Debt-to-Income Ratio Calculator
Lenders look at two ratios: front-end DTI (your proposed housing payment ÷ gross monthly income) and back-end DTI (housing + all other monthly debts ÷ gross monthly income). Both are computed below, with standard underwriting band labels.
Before taxes; combined if there's a co-borrower.
P&I (principal and interest) + taxes + insurance + HOA + PMI.
Minimum payments on cars, student loans, credit cards, child support.
Inside the classic 28/36 envelope — most lenders will treat this as low DTI (debt-to-income) risk on a conventional or government loan.
36.0% Conservative · 36.0% total DTI
- Proposed housing
- $2,200 / mo
- Other monthly debts
- $500 / mo
- Remaining monthly income
- $4,800 / mo
- Front-end DTI
- 29.3%
- Back-end DTI
- 36.0%
- Total monthly obligations
- $2,700 / mo
Free during pilot
How DTI is computed
Gross monthly income is your annual gross divided by 12. Front-end DTI is your proposed housing payment divided by that monthly income. Back-end DTI is your proposed housing plus every other recurring debt — divided by the same monthly income.
Lenders typically focus on back-end DTI because it captures the full burden. The bands below are heuristics, not bright lines:
- ≤ 36% (conservative) — the classic 28/36 envelope. Low underwriting risk.
- 36–43% (qualifying) — inside the Qualified Mortgage limit; common approval band.
- 43–45% (stretched) — usually still doable on conventional with AUS (automated underwriting system) approval and compensating factors (other strengths in your file, like cash reserves or a high credit score).
- > 45% (over limit) — most conventional lenders stop here; FHA manual underwrite or other loan programs may still consider higher ratios.
What lenders count as "debts"
- Car loan / lease payments, including amounts about to roll into the first payment.
- Minimum credit-card payments — the statement minimum, not what you're actually paying.
- Student loans — including income-driven plans, where lenders may use 1% of the balance or the IDR amount, depending on program.
- Court-ordered alimony, child support, or judgments.
What this calculator deliberately excludes
- Residual-income tests. VA loans specifically require a residual-income calc on top of DTI.
- Asset / reserve requirements. Months of reserves (cash post-closing) often work as a compensating factor and aren't captured by a ratio.
Frequently asked questions
What is a debt-to-income (DTI) ratio?
DTI is your monthly debt obligations divided by your gross monthly income, expressed as a percent. Lenders look at two versions: front-end DTI (proposed housing payment ÷ gross monthly income) and back-end DTI (housing plus all other monthly debts ÷ gross monthly income).
What DTI do I need to qualify for a mortgage?
There is no single bright line, but common heuristics treat 36% or below as conservative, 36–43% as inside the Qualified Mortgage envelope and a typical approval band, 43–45% as stretched but often doable on conventional with automated-underwriting approval, and above 45% where most conventional lenders stop. FHA manual underwriting may consider higher ratios. Actual qualification also depends on credit, reserves, and loan program.
What counts as debt in a DTI calculation?
Lenders count car loans and leases, the statement minimum on credit cards, student-loan payments (sometimes estimated at 1% of the balance), and court-ordered alimony, child support, or judgments. Utilities, groceries, and other variable spending are not counted.
What does this DTI calculator not capture?
It excludes VA residual-income tests, asset and reserve requirements, and lender-specific overlays — all of which can change a decision a ratio alone would not. Bonus, commission, and self-employment income often require multi-year averaging, so your qualifying income may differ from your paystub. This is an estimate, not a pre-approval.
Estimates only — not a lending decision or pre-approval. The bands shown reflect common underwriting heuristics on conventional and FHA loans; actual qualification depends on credit score, reserves, loan program, AUS (automated underwriting system) findings, and lender-specific overlays. Your paystub income is not always the figure a lender will use — bonus, commission, and self-employment income often require multi-year averaging. Methodology last reviewed: May 26, 2026.