Debt-to-Income Ratio Calculator - Free DTI Calculator

Income & Debt Information

Monthly Gross Income ($)

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Monthly Housing Payment ($)

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Credit Card Payments ($)

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Auto Loan Payments ($)

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Student Loan Payments ($)

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Other Monthly Debts ($)

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DTI Analysis Results

✅ Good DTI - Qualified for Most Loans

                        Total DTI Ratio
                        48.3%
                    

Front-End DTI 30.0%

Monthly Income $6,000

Total Debt Payments $2,900

Remaining Income $3,100

Loan Qualification Status

Conventional Loans Not Qualified

FHA Loans Qualified

VA Loans Not Qualified

USDA Loans Not Qualified

Visual Analysis

💡 Key Insights

Your DTI ratio of 48.3% is considered moderate. While you qualify for some loan programs, reducing your debt or increasing your income could improve your loan options and interest rates.

🎯 Recommendations

Focus on paying down high-interest debt first
Consider increasing your income through side work
Avoid taking on new debt before applying for loans
Build an emergency fund to reduce financial stress

Understanding Debt-to-Income Ratios

What is DTI Ratio?

Debt-to-Income (DTI) ratio is a crucial financial metric that compares your monthly debt payments to your gross monthly income. Lenders use DTI to assess your ability to manage monthly payments and repay borrowed money.

A lower DTI ratio indicates better financial health and higher likelihood of loan approval with favorable terms.

Types of DTI Ratios

Front-End DTI: Housing expenses only (mortgage/rent, taxes, insurance, HOA fees)
Back-End DTI: All monthly debt obligations including housing costs
Combined Analysis: Lenders evaluate both ratios for complete financial assessment

DTI Requirements by Loan Type

Conventional Loans: 28% front-end, 36% back-end
FHA Loans: 31% front-end, 43% back-end
VA Loans: No front-end limit, 41% back-end
USDA Loans: 29% front-end, 41% back-end
Jumbo Loans: 28% front-end, 36% back-end

Improving Your DTI Ratio

Increase Income: Salary increases, side jobs, additional income streams
Reduce Debt: Pay down existing debts, consolidate high-interest debt
Strategic Planning: Time major purchases, avoid new debt applications
Debt Management: Use avalanche or snowball methods to eliminate debt

Common DTI Mistakes

Using net income instead of gross income
Forgetting to include all debt obligations
Underestimating housing costs (taxes, insurance, HOA)
Not accounting for future debt changes
Including irregular or unstable income sources

Beyond DTI: Other Factors

While DTI is crucial, lenders also consider:

Credit score and history
Employment stability and history
Cash reserves and savings
Down payment amount
Debt-to-credit utilization ratio
Overall financial profile

📋 Professional Tip

Before applying for a mortgage, try to get your DTI ratio below 36% for the best rates and terms. Even if you qualify with a higher DTI, improving your ratio can save you thousands in interest over the life of your loan.