Debt-to-Income Ratio Calculator

How it works: Enter your monthly income and debt payments to calculate your debt-to-income ratio. Lenders use DTI to assess your ability to repay loans.

📈 Monthly Income

Gross Monthly Income ($)

Additional Income ($)

💳 Monthly Debt Payments

Housing Payment ($)

Credit Card Payments ($)

Auto Loan Payment ($)

Student Loan Payment ($)

Other Debt Payments ($)

Child Support/Alimony ($)

Understanding Debt-to-Income Ratio

What is DTI?

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

Types of DTI Ratios

Front-End DTI

Formula: (Housing Expenses ÷ Gross Monthly Income) × 100

Includes: Rent/mortgage, property taxes, insurance, HOA fees

Used for: FHA loans, housing affordability assessment

Back-End DTI

Formula: (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

Includes: All front-end expenses plus credit cards, auto loans, student loans, etc.

Used for: Most loan applications, comprehensive debt assessment

Why DTI Matters

Loan Approval: Lenders have maximum DTI requirements
Interest Rates: Lower DTI often means better rates
Loan Amount: Higher DTI may limit borrowing capacity
Financial Health: Indicates debt management ability

Tip: Most lenders prefer a back-end DTI of 43% or lower for conventional loans and 50% or lower for FHA loans.

DTI Standards & Requirements

Conventional Loans

Preferred: DTI ≤ 36% (Front-end ≤ 28%)
Maximum: DTI ≤ 43% (May require compensating factors)

FHA Loans

Standard: DTI ≤ 43%
Maximum: DTI ≤ 50% (With strong compensating factors)

VA Loans

General Guideline: DTI ≤ 41%
Flexible: No strict maximum, considers residual income

USDA Loans

Maximum: DTI ≤ 41%
Exceptions: Up to 46% with strong credit score

Compensating Factors

Lenders may allow higher DTI ratios with:

Credit score ≥ 720
Cash reserves (3+ months of payments)
Stable employment history
Low loan-to-value (LTV) ratio
Additional income sources

Note: These are general guidelines. Specific requirements vary by lender and loan program.