Debt-to-Income Calculator

DTI is the share of your gross monthly income that goes toward debt payments. Lenders use it to gauge how much new debt you can reasonably take on. Lower DTI generally means more room to borrow at favorable terms.

Front-end DTI counts housing only (mortgage or rent). Back-end DTI counts housing plus every other monthly debt payment (cars, credit cards, student loans, personal loans). Mortgage underwriters typically look at both.

Common back-end thresholds: 36% or less is conservative, up to 43% is the Qualified Mortgage limit for many conventional loans, and some loan programs (FHA, VA) allow higher with compensating factors. Front-end is often capped around 28 to 31% depending on the loan. This calculator does not represent a loan offer.

Recurring monthly obligations: mortgage or rent, car loans/leases, credit card minimum payments, student loans, personal loans, child support and alimony, and similar. Insurance premiums, utilities, groceries, and discretionary spending generally do not count toward DTI.

Pay down high-balance debts (especially credit cards), avoid taking on new debt before a mortgage application, refinance to lower payments, or increase income. Even a few hundred dollars off monthly debt payments can shift DTI by a percentage point.

Gross income (before taxes and deductions). Lenders calculate DTI on gross income because tax and deduction situations vary so widely. Your take-home pay is what funds the payments in practice, so high taxes or benefit costs can make a borderline DTI feel tighter than the number suggests.

Below 36% is considered good and qualifies you for most loans at competitive rates. 36-43% is acceptable but lenders pay close attention. Above 43% is the threshold where conventional mortgage approval becomes difficult. The lower your DTI, the better your interest rates and loan options.

Two approaches: (1) reduce monthly debt payments (pay off cards, refinance to lower rates, consolidate), or (2) increase gross income (raise, side income, second job). The fastest improvement usually comes from paying off the smallest debt (eliminates a payment entirely) or paying down credit cards (reducing minimum payments). Even a $200/month payment reduction can move DTI by 3-4%.

It depends on the calculation. For RENT: yes, current rent counts in your DTI. For FUTURE MORTGAGE: lenders calculate DTI as if you already had the mortgage payment. They're checking if you can afford the new payment given your current debts.

Several options: (1) Pay off existing debts to lower DTI before applying. (2) Increase your down payment to reduce the loan amount (lower mortgage payment, lower DTI). (3) Buy a less expensive home with a smaller mortgage. (4) Find a co-borrower whose income improves the combined DTI. (5) Wait and increase your income through career growth. (6) Consider FHA or VA loans which allow higher DTI in some cases.