Debt-to-Income Ratio Calculator

What is This Calculator For?

This calculator helps you determine if you meet standard mortgage lending requirements by calculating your debt-to-income (DTI) ratios. Lenders use these ratios to assess your ability to manage monthly mortgage payments alongside your existing debts.

When to Use This Calculator

  • Before applying for a mortgage
  • When planning to refinance
  • To assess your current debt load
  • When planning debt payoff strategy

What You'll Learn

  • If you meet lending requirements
  • Your front-end and back-end DTI ratios
  • Areas for potential improvement
  • Personalized recommendations

Understanding DTI Standards

Industry Standards

Conventional Loans

  • Front-end DTI: 28% or less
  • Back-end DTI: 36-43%

FHA Loans

  • Front-end DTI: 31% or less
  • Back-end DTI: up to 43%

Common Misconceptions

⚠️

Not all monthly expenses count toward DTI - only debt payments are included

⚠️

Higher income alone doesn't guarantee a good DTI ratio - it's about the balance between income and debts

Step-by-Step Guide

1

Calculate Your Monthly Income

Include:

  • Base salary or wages
  • Regular overtime or bonuses
  • Investment income
  • Other reliable income sources

Pro Tips for Better Results

Improving Your DTI

  • 💡Pay down high-interest debt first
  • 💡Avoid taking on new debt before applying
  • 💡Consider debt consolidation

Common Mistakes to Avoid

  • ⚠️Including utilities in debt calculations
  • ⚠️Using net instead of gross income
  • ⚠️Forgetting annual expenses like property taxes

Monthly Income

Housing Expenses

Other Monthly Debts