Debt-to-Income (DTI) Calculator

What is DTI?

Debt-to-Income ratio is the percentage of your gross monthly income that goes toward debt payments. It's the single most important number lenders use (alongside credit score) to decide whether you qualify for a mortgage and at what rate.

Front-end vs back-end DTI

• Front-end DTI = (proposed housing payment) / gross monthly income. Includes principal + interest + property tax + homeowners insurance + HOA. Lenders generally want this under 28-31%.
• Back-end DTI = (housing + all other monthly debt obligations) / gross monthly income. Includes auto loans, student loans, credit card minimums, alimony, child support, etc. This is the ratio that actually matters most for qualification.

DTI caps by loan type

• FHA — 43% back-end (can stretch to 50% with strong compensating factors like high credit score, large reserves, or significant down payment)
• Conventional — 50% back-end (lenient cap, but requires 660+ credit and reserves)
• VA — 41% back-end (with residual income test that's often more important than DTI itself)
• USDA — 41% back-end (rural property purchases only)

What counts as debt?

Lenders pull your credit report and add up the minimum monthly payments on everything that shows up:

• Auto loans + leases
• Student loans (income-driven plans use the actual payment, not 1% of balance)
• Credit card minimums (not the balance)
• Personal loans
• Court-ordered alimony, child support, judgments
• Co-signed loans (even if someone else pays them)

Not counted: utility bills, cell phone, streaming services, groceries, insurance premiums (other than homeowners + auto already in PITI).

How to lower your DTI fast

• Pay off small revolving balances entirely (eliminates the minimum)
• Pay down high-payment auto or personal loans
• Refinance to longer terms to reduce monthly payment (caution — extends total interest)
• Add a co-borrower with strong income
• Wait for high-payment debts to reach payoff month (DTI drops once they're done)