Debt-to-Income Ratio Calculator
Calculate your DTI ratio to check mortgage and loan qualification. Get instant analysis for conventional, FHA, VA, and jumbo loans with personalized improvement tips.
DTI Calculator
💰 Monthly Income
🏠 Proposed Housing Costs
💳 Monthly Debt Payments
Understanding Debt-to-Income Ratio
What is DTI Ratio?
The debt-to-income (DTI) ratio is a key financial metric that lenders use to evaluate your ability to manage monthly debt payments and repay borrowed money. It compares your total monthly debt obligations to your gross monthly income.
There are two types of DTI ratios lenders consider:
- Front-end DTI: Only includes housing-related expenses (mortgage, taxes, insurance, PMI, HOA)
- Back-end DTI: Includes all monthly debt obligations (housing + credit cards, loans, etc.)
DTI Requirements by Loan Type
Conventional Loans
Front-end: 28% | Back-end: 36%
May allow higher ratios with strong credit and reserves
FHA Loans
Front-end: 31% | Back-end: 43%
More flexible for first-time homebuyers
VA Loans
No front-end limit | Back-end: 41%
For eligible veterans and service members
Jumbo Loans
Front-end: 28% | Back-end: 36%
Stricter requirements for larger loan amounts
How to Calculate DTI
Front-End DTI Formula:
(Monthly Housing Costs ÷ Gross Monthly Income) × 100
Back-End DTI Formula:
(Total Monthly Debts ÷ Gross Monthly Income) × 100
Tips to Improve DTI
- ✓Pay down high-interest credit card debt
- ✓Increase your gross monthly income
- ✓Avoid taking on new debt before applying
- ✓Consider a lower-priced home
- ✓Make larger down payment to reduce monthly payment
What Lenders Consider
- •Gross monthly income (before taxes)
- •All recurring monthly debt payments
- •Credit history and score
- •Employment history and stability
- •Cash reserves and assets
- •Down payment amount
Special Considerations
Income Calculations
- • Bonus/commission income: 2-year average required
- • Rental income: 75% counted (25% for maintenance)
- • Self-employment income: 2-year tax return average
- • Overtime pay: 2-year history typically required
- • Part-time income: Must show 2-year stability
Debt Exclusions
- • Debts with less than 10-11 payments remaining
- • Authorized user accounts (sometimes excluded)
- • Business debt (if properly documented)
- • Debts being paid by others (with documentation)
- • Disputed accounts under investigation
💡 Pro Tips for DTI Success
Before You Apply
- • Get pre-approved to know your budget
- • Pay down credit cards to $0 if possible
- • Don't finance new purchases (cars, furniture)
- • Keep employment stable
- • Save for larger down payment if DTI is high
During Application Process
- • Provide accurate income documentation
- • Don't close old credit accounts
- • Respond quickly to lender requests
- • Avoid large deposits without explanation
- • Keep debt balances low
Disclaimer: This calculator provides estimates only. Actual loan qualification depends on many factors including credit score, employment history, assets, and lender-specific requirements. Consult with a qualified mortgage professional for personalized advice.