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Debt-to-Income Ratio Calculator

Lenders judge whether you can carry a mortgage by comparing your monthly debts with your gross income. Enter your income, the proposed housing payment and your other debts to see both ratios and where they fall against common limits.

Income
7,500
$
Before taxes and deductions
2,000
$
Rent, or the full mortgage payment with tax, insurance and HOA
Other monthly debts
400
$
250
$
150
$
0
$
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Back-end DTI
37.3%
Front-end (housing only): 26.7%
Manageable. Above 36%, but within the 43% many lenders allow with good credit.
Total monthly debts
$2,800
Room before 36% DTI
-$100
Room before 43% DTI
$425

How DTI is calculated

The formula

Front-end (housing) ratio
Front-end DTI = Monthly housing paymentGross monthly income × 100
Monthly housing payment
Principal, interest, taxes, insurance and HOA dues on the home
Gross monthly income
Income before taxes and deductions, all borrowers
Back-end (total) ratio
Back-end DTI = Housing payment + Other monthly debtsGross monthly income × 100
Other monthly debts
Car payments, student loans, card minimums and other recurring debts
Room under a limit
Room = (Gross monthly income × Limit) − All monthly debts
Limit
36% or 43%, the two reference points the calculator reports
All monthly debts
The housing payment plus your other monthly debts

Lenders look at two ratios. The front-end ratio covers only the housing payment: principal, interest, property tax, homeowner's insurance, HOA dues and any mortgage insurance. The back-end ratio adds every other recurring debt that shows on your credit report or in court orders.

  • Count the minimum required payment on credit cards, car loans, student loans and personal loans, plus alimony or child support.
  • Leave out utilities, groceries, phone bills, insurance premiums outside the mortgage and other living costs.
  • Use gross income, before taxes and deductions, for all borrowers on the loan.

The calculator also shows how much monthly debt you could add before reaching 36% and 43%, two common reference points. Actual limits vary by lender and loan program, and lenders may allow more with strong credit or cash reserves.

Results are estimates for planning, not a loan offer or financial advice. Lenders, title companies and local rules set the actual figures.

Terms used in this calculator

Debt-to-Income Ratio (DTI)Mortgages & financingDebt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to decide how large a mortgage payment you can afford.Mortgage Pre-ApprovalMortgages & financingA mortgage pre-approval is a lender's conditional commitment to lend up to a set amount, based on verified income, assets and credit. Sellers often expect one before accepting an offer.PITIMortgages & financingPITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders use it to judge whether a borrower can afford a home.MortgageMortgages & financingA mortgage is a loan used to buy real estate, secured by the property itself. If the borrower stops paying, the lender can take the property through foreclosure to recover what is owed.Down PaymentMortgages & financingA down payment is the part of a home's purchase price the buyer pays upfront in cash rather than borrowing. It is usually stated as a percentage of the price and is due at closing.Private Mortgage Insurance (PMI)Mortgages & financingPrivate mortgage insurance (PMI) protects the lender, not the borrower, if a borrower defaults on a conventional loan. It is usually required when the down payment is less than 20% of the home's value.Loan-to-Value Ratio (LTV)Mortgages & financingLoan-to-value ratio (LTV) compares the size of a mortgage with the property's value. A lower LTV means more equity and less risk for the lender, which often brings better loan terms.RefinanceMortgages & financingTo refinance is to replace an existing mortgage with a new one, usually to get a lower rate, change the loan term, or take cash out of the home's equity.

Frequently Asked Questions

Guides to read next

How Much House Can You Afford?Guide · 6 min readThe right price is the one you can pay every month without strain and still keep savings for repairs and emergencies. This guide shows how lenders measure affordability, what they leave out, and how to build a budget that works for you.How to Get Pre-Approved for a MortgageGuide · 7 min readA pre-approval tells you, and the sellers you make offers to, how much a lender is prepared to lend after checking your income, assets and credit. This guide explains how it differs from pre-qualification, what to gather, how to compare lenders and what can change the answer before closing.Check Your Finances Before You Buy: Credit, Debt and Cash ReservesGuide · 7 min readYour credit, debts and savings decide which loans you can get, how much you can offer and how much room you have for surprises. Checking them before you shop gives you time to fix problems. This guide covers credit reports, debt-to-income, cash to close and the extra reserves distressed properties call for.

More calculators

Home Affordability CalculatorThe price range your income and debts support under the 28/36 rule.Mortgage CalculatorMonthly payment with taxes, insurance, PMI and an amortization schedule.Refinance CalculatorMonthly savings, lifetime interest and the break-even point.Closing Cost CalculatorLine-by-line closing costs and cash needed at closing.

Disclaimer: The information on this page is for general educational purposes only and is not legal, financial, tax or investment advice. Laws, lending rules and market conditions vary by state and change over time, and any figures shown are estimates. Before you buy, sell, finance or bid on a property, consult a qualified attorney, financial advisor, lender or licensed real estate professional about your situation.