Debt-to-Income (DTI) Calculator
Your DTI ratio is one of the most important numbers in your mortgage application. Find out where you stand and what lenders will see.
Debt-to-Income (DTI) Calculator
What is DTI?
Your debt-to-income ratio (DTI) compares your monthly debt payments to your gross monthly income. Lenders use two versions: the front-end ratio (housing costs only) and the back-end ratio (all monthly debts). Most conventional lenders want a front-end DTI under 28% and a back-end DTI under 36%. The qualified mortgage (QM) hard cap is 43%.
Monthly Gross Income
Housing Costs (PITI)
Other Monthly Debts
Your DTI Ratios
Front-End DTI (Housing Only)
Housing: $1,875 / Income: $6,000
Good. Most conventional lenders will approve you comfortably. You have room in your budget for unexpected expenses.
Back-End DTI (All Debts)
All Debts: $2,525 / Income: $6,000
Acceptable. You may still qualify for a mortgage (43% is the QM limit), but your options narrow and rates may be higher. FHA loans allow up to 50% in some cases.
What Lenders See
Ideal Zone
<36%
Best rates & terms
Caution Zone
36-43%
Higher rates likely
Danger Zone
>43%
Most lenders decline
Your back-end DTI is 42.1%. You are in the caution zone. While you may still qualify for a Qualified Mortgage (the QM cap is 43%), expect stricter scrutiny, higher rates, and potentially larger down payment requirements. FHA loans may offer more flexibility.
Max Mortgage Payment You Can Afford
Based on your income and existing debts, here is the maximum mortgage payment (P&I only) at each DTI threshold. Property tax, insurance, and HOA are subtracted.
Conservative (28% front-end)
$1,305
per month
Standard (36% back-end)
$1,135
per month
Maximum QM (43% back-end)
$1,555
per month
Recommended max mortgage payment: $1,135/mo — this is the lower of the 28% front-end and 36% back-end limits, the standard most financial advisors recommend.
How to Lower Your DTI
Pay Down Credit Cards First
Credit cards have the highest minimum payments relative to balance. Paying off a $5,000 card can drop your DTI by 2-3%.
Pay Off Small Balances
Eliminating a $150/mo car payment entirely is more impactful than reducing a $500 payment by $150. Target debts you can fully eliminate.
Increase Your Income
A side income of $500/mo lowers your DTI significantly. Lenders accept documented side income if you can show 2 years of history.
Refinance Existing Loans
Extending a car loan or consolidating student loans can lower monthly payments. This doesn't reduce total debt but improves your ratio.
Avoid New Debt Before Applying
Do not finance furniture, a car, or open new credit cards in the months before your mortgage application. Every new payment raises your DTI.
Add a Co-Borrower
A spouse or co-borrower's income is added to yours, lowering the combined DTI. Their debts are also counted, so run the numbers first.
DTI Limits by Loan Type
| Loan Type | Front-End Max | Back-End Max | Notes |
|---|---|---|---|
| Conventional | 28% | 36-45% | Up to 45% with strong compensating factors (high credit, reserves) |
| FHA | 31% | 43-50% | Up to 50% with credit score 580+ and compensating factors |
| VA | N/A | 41% | No hard cap; 41% is a guideline. Residual income is the key factor |
| USDA | 29% | 41% | Strict limits; income caps also apply |
