Debt-to-Income Ratio (DTI) Calculator
Calculate Front-End and Back-End DTI ratios. Essential for mortgage pre-qualification and personal financial health assessment.
1. Monthly Income (Gross)
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2. Monthly Debts
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About
Lenders use the Debt-to-Income (DTI) ratio to measure your ability to manage monthly payments and repay debts. It is a primary indicator for mortgage approvals (FHA, VA, Conventional) and personal loan eligibility. A high DTI suggests you are over-leveraged, while a low DTI indicates disposable income. This tool calculates both the "Front-End" ratio (housing costs only) and the "Back-End" ratio (total debt load).
DTI
mortgage calculator
loan approval
financial health
credit worthiness
Formulas
The Back-End Ratio is the most critical metric for lenders:
DTI = Rent + Cards + Loans + AlimonyGrossIncome × 100
The Front-End Ratio focuses strictly on housing:
FrontRatio = Mortgage + HOA + PropertyTaxGrossIncome × 100
Reference Data
| DTI Range | Status | Lender Perspective |
|---|---|---|
| < 35% | Excellent | Prime candidate. High likelihood of approval and best interest rates. |
| 36% - 43% | Good / Acceptable | Standard approval range. Qualified Mortgage (QM) limit is often 43%. |
| 44% - 49% | High Risk | FHA loans may still approve with compensating factors (savings, credit score). |
| > 50% | Critical | Approval unlikely. Indicates financial distress. Refinancing or debt consolidation recommended. |
| Front-End Limit | 28% | Standard limit for housing costs (PITI) vs Income. |
Frequently Asked Questions
DTI is calculated using Gross Monthly Income (before taxes and deductions). Lenders use the pre-tax figure because it is a standardized baseline.
Yes. If you are applying for a non-mortgage loan, rent is a liability. If applying for a mortgage, your *current* rent is ignored, but the *projected* new mortgage payment is used to calculate the ratio.
The Consumer Financial Protection Bureau (CFPB) generally establishes 43% as the maximum DTI for a Qualified Mortgage. Borrowers above this limit may face stricter scrutiny or higher rates.
No. Variable expenses like utilities, groceries, and gas are not included in DTI. Only fixed, recurring debt obligations (minimum payments on credit cards, car loans, student loans) are counted.