Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio and see if you qualify for mortgage loans. Includes lender guidelines for Conventional, FHA, VA, and USDA.

Finance

Gross monthly income

Before taxes and deductions

Monthly debt payments

Include minimum payments for all recurring debts

Proposed new monthly payment (optional)

E.g. a new mortgage or car loan you are considering

Back-end DTI

34.6%

Good

Front-end DTI

23.1%

housing only

Remaining income

$4,250.00

after debts

DTI scale

0%20% (excellent)36% (good)43% (max QM)50%+

Manageable debt level. Most lenders will approve you.

Monthly breakdown

Gross monthly income$6,500.00

Mortgage / Rent-$1,500.00

Car loan-$350.00

Student loan-$250.00

Credit card minimum-$150.00

Total monthly debts$2,250.00

Max new payment (43% DTI)

$545.00

Qualified Mortgage limit

Max new payment (36% DTI)

$90.00

Conservative target

Lender type	Max front-end DTI	Max back-end DTI	Your status
Conventional	28%	36%	Qualifies
FHA	31%	43%	Qualifies
VA	N/A	41%	Qualifies
USDA	29%	41%	Qualifies

Front-end DTI = housing payment / gross income. Back-end DTI = all monthly debts / gross income. The 43% threshold is the Qualified Mortgage (QM) limit under US CFPB rules. Lenders may have additional requirements including credit score, down payment, and reserves.

What is Debt-to-Income Ratio Calculator?

The Debt-to-Income (DTI) ratio is one of the most important metrics mortgage lenders use to determine how much you can borrow. It compares your total monthly debt payments to your gross monthly income, showing what percentage of your income is already committed to debt. Our calculator computes both front-end DTI (housing only) and back-end DTI (all debts), rates your financial health, shows qualification status across four major mortgage types (Conventional, FHA, VA, USDA), and calculates the maximum new payment you can afford while staying within lender limits.

How It Works

Enter your gross monthly income and list all monthly debt payments with their amounts. Optionally add a proposed new payment (e.g., a mortgage you are considering). The calculator computes front-end and back-end DTI ratios, rates your financial health on a scale, checks qualification against four mortgage programs, and shows the maximum new monthly payment at both 36% and 43% DTI thresholds.

Formula

Front-End DTI = Housing Payment / Gross Monthly Income × 100
Back-End DTI = Total Monthly Debts / Gross Monthly Income × 100
Max New Payment = (Gross Income × DTI Limit) − Current Debts

Formula Explained

DTI is expressed as a percentage. If you earn $6,500/month gross and have $2,250 in total monthly debt payments, your back-end DTI is $2,250 / $6,500 × 100 = 34.6%. To find how much new debt you can take on, multiply your income by the DTI limit and subtract existing debts. At 43% limit: $6,500 × 0.43 − $2,250 = $545 maximum new monthly payment.

Example

Gross monthly income: $6,500 Debts: Mortgage $1,500, Car $350, Student loan $250, Credit card $150 Total monthly debts: $2,250 Front-end DTI: $1,500 / $6,500 = 23.1% Back-end DTI: $2,250 / $6,500 = 34.6% (Good) Qualifies for: Conventional ✓, FHA ✓, VA ✓, USDA ✓ Max new payment at 43%: $545 Max new payment at 36%: $90

Tips & Best Practices

✓Pay off credit cards before applying for a mortgage — they have the worst impact on DTI.
✓Do not open new credit accounts in the 6 months before applying for a mortgage.
✓If your DTI is borderline, consider a larger down payment to reduce the loan amount.
✓Gross income includes salary, bonuses, rental income, and other regular income sources.
✓Some lenders have manual underwriting that may accept higher DTI with strong compensating factors.

Common Use Cases

•Checking mortgage qualification before applying
•Understanding how existing debts affect home buying power
•Determining the maximum affordable monthly mortgage payment
•Comparing qualification across Conventional, FHA, VA, and USDA programs
•Planning debt payoff to improve mortgage eligibility

Frequently Asked Questions

DTI is the percentage of your gross monthly income that goes to debt payments. Back-end DTI includes all debts (mortgage, car, student loans, credit cards). Front-end DTI includes only housing costs. Lenders use DTI to assess whether you can handle additional debt. Lower DTI = better financial health and easier loan approval.

Under 20% is excellent, 20-35% is good, 36-43% is acceptable for most mortgages, and above 43% is considered high risk. The Qualified Mortgage (QM) threshold is 43% — most conventional lenders cap back-end DTI here. FHA allows up to 43-50% with compensating factors.

Include minimum monthly payments for: mortgage/rent, car loans, student loans, credit card minimums, personal loans, child support/alimony, and any other recurring debt payments. Do NOT include: utilities, groceries, insurance premiums, taxes, subscriptions, or day-to-day expenses.

Front-end DTI = housing payment only (mortgage/rent) ÷ gross income. Back-end DTI = all debt payments ÷ gross income. Conventional mortgages typically require front-end ≤28% and back-end ≤36%. FHA allows front-end ≤31% and back-end ≤43%.

Pay down existing debts (especially credit cards and car loans). Increase your income. Avoid taking on new debt. Refinance loans to lower monthly payments. Pay off small debts entirely to eliminate their monthly payment from your DTI calculation.