Budget and qualifying
Debt-to-Income Ratio Calculator for a Mortgage
Find the two ratios lenders check first: how much of your gross income goes to housing, and how much goes to all your monthly debts.
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Debt-to-income (DTI)
Results
In plain words
With $7,500 of monthly income, a $2,300 housing payment and $600 of other debts, your housing ratio is 30.67% and your total debt-to-income ratio is 38.67%.
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Key figures
- Back-end DTI (all debts)38.67%
- Front-end DTI (housing only)30.67%
- Left after debts$4,600
- Max housing at 43% DTI$2,625
- Max housing at 50% DTI$3,150
- New monthly housing payment$2,30031%
- Other monthly debt payments$6008%
- Left after debts$4,60061%
View chart as table
| Back-end DTI (all debts) | |
|---|---|
| Your numbers | 38.67% |
| FHA 43% | 43% |
| Fannie Mae 50% | 50% |
| VA 41% | 41% |
| USDA 41% | 41% |
Compare scenarios
| Scenario | Front-end DTI (housing only) | Back-end DTI (all debts) |
|---|---|---|
| Your numbers | 30.67% | 38.67% |
| After paying off a debt | 30.67% | 35.33% |
| Difference: After paying off a debt | 0 | −3.33% |
How to use this calculator
- Enter your gross monthly income before taxes, for all borrowers on the loan.
- Enter the full monthly payment for the home you want, including taxes, insurance and any HOA or mortgage insurance.
- Enter the minimum monthly payments on your other debts as they appear on your credit report.
- Read your front-end and back-end ratios and compare them with the program limits in the table below.
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. It is one of the first numbers a mortgage lender checks, because it shows whether a new house payment fits on top of what you already owe. This calculator gives you both versions lenders use.
How this debt-to-income calculator works
The tool divides your monthly payments by your gross monthly income and turns the result into a percentage:
Front-end DTI = housing payment ÷ gross monthly income × 100
Back-end DTI = (housing payment + other monthly debts) ÷ gross monthly income × 100
The housing payment should be the full amount you expect to pay on the new home: principal, interest, property tax, homeowners insurance, mortgage insurance and HOA dues. If you do not know it yet, estimate it first with the mortgage payment calculator.
Worked examples
Example 1: comfortable ratios
A couple earns $90,000 a year together, or $7,500 a month before tax. The home they want would cost $2,300 a month in total, and they pay $600 a month on a car loan and a student loan.
- Front-end: $2,300 ÷ $7,500 = 0.3067, or about 30.7%.
- Back-end: ($2,300 + $600) ÷ $7,500 = 0.3867, or about 38.7%.
Both ratios sit under FHA’s standard 31% and 43% guidelines and well under the 50% maximum many conventional loans allow through automated underwriting.
Example 2: a stretch
A single buyer earns $5,200 a month. The target home costs $1,650 a month and other debts are $700.
- Front-end: $1,650 ÷ $5,200 = about 31.7%.
- Back-end: $2,350 ÷ $5,200 = about 45.2%.
This buyer is above FHA’s 43% standard and would need compensating factors, such as cash reserves or very little payment increase, or an automated approval. Paying off a $300-a-month car loan would bring the back-end ratio down to about 39.4%.
What your result means
Think of your back-end ratio in three bands:
- Under 36%: usually comfortable for both you and lenders.
- 36% to 43%: common and often approved, but your budget may feel tight.
- Over 43%: possible on some programs with strong credit, savings or an automated approval, but the risk of payment stress is higher. Fannie Mae’s general maximum through Desktop Underwriter is 50%.
Remember that lenders use gross income. Your take-home pay is smaller after taxes, retirement savings and health insurance, so a ratio a lender accepts can still be too high for your real budget.
Program rules that change the answer
| Program | Typical DTI guideline | What can raise it |
|---|---|---|
| Conventional (Fannie Mae) | Up to 50% with automated approval; 36% to 45% manual | Credit score, reserves, down payment |
| FHA | 31% housing / 43% total for manual underwriting | Compensating factors, up to 40/50 manually; higher with automated approval |
| VA | 41% guideline | Residual income above VA’s table |
| USDA | 29% housing / 41% total | Approved debt-ratio waivers |
| Non-QM | Set by each lender | Bank-statement or asset-based income rules |
Each lender can add stricter rules of its own, called overlays. Read mortgage requirements by loan type for credit score and down payment rules alongside DTI.
How to lower your ratio before you apply
Small changes can move your ratio more than you expect, because each $100 of monthly debt is worth about 1.3 percentage points on a $7,500 monthly income.
- Pay off the smallest balances first. A store card with a $35 minimum payment disappears from the ratio once its balance is zero.
- Avoid new debt. Do not finance furniture, a car or a phone until after closing.
- Add a co-borrower. A spouse or family member’s income counts if they are on the loan and meet the program’s rules.
- Lower the housing payment. A cheaper home, a larger down payment, or down payment assistance that reduces the loan amount all help.
- Document all income. Part-time work, bonuses and self-employment may count if you have a steady history, usually two years.
Assumptions
- Income is gross monthly income for everyone on the loan.
- “Other debts” are minimum monthly payments, not balances.
- The calculator does not apply program-specific student loan, alimony or installment-loan rules.
- Results are rounded to two decimal places.
Common mistakes
- Using take-home pay. Lenders use income before tax, so your ratio will look worse than theirs.
- Leaving out taxes and insurance. A principal-and-interest figure alone understates the housing payment.
- Forgetting deferred student loans. A $0 payment may still be counted using a share of the balance.
- Opening new credit before closing. A new car loan can push your DTI over the limit at the last minute.
Limits of this estimate
Lenders verify income with pay stubs, W-2s or tax returns and may average or exclude some income, such as new overtime or recent self-employment. They also pull your credit report for the exact payments. Use this tool to plan, then ask a lender or a HUD-approved housing counselor to review your numbers. If you are self-employed, the bank statement income calculator shows another way lenders may count income.
For context, the national average 30-year fixed rate was 7.40% as of October 15, 2026 (Freddie Mac). FHA, VA and USDA rates are set by each lender and often differ.Source: Freddie Mac Primary Mortgage Market Survey, via FRED
Frequently asked questions
What is a good debt-to-income ratio for a mortgage?
Lower is better. Many lenders are comfortable with a total DTI of 36% or less, and most programs allow more: up to 50% for many conventional loans approved through Fannie Mae's automated system, and often 43% or higher for FHA with strong compensating factors.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only your housing payment. Back-end DTI adds every other monthly debt payment. Lenders focus mainly on the back-end ratio, but FHA's manual guidelines check both, starting at 31% and 43%.
Do lenders use gross or net income?
Gross income, meaning before taxes and payroll deductions. That is why a ratio that looks fine to a lender can still feel tight on your take-home pay.
Which debts count in DTI?
Debts on your credit report and some others, such as child support or alimony. Car loans, student loans, credit card minimums and personal loans count. Living costs like utilities, phone bills, food and insurance do not.
How are student loans counted if my payment is zero?
Each program has a rule. Conventional and FHA lenders may use a small percentage of the loan balance when your reported payment is zero, so the ratio can be higher than you expect. Ask your lender which rule applies.
How can I lower my DTI quickly?
Pay off or pay down small debts, avoid new credit, add a co-borrower's income, choose a cheaper home or make a bigger down payment. Paying a card down to zero removes its minimum payment from the calculation.
Is DTI the same as the VA residual income test?
No. VA loans look at DTI with a 41% guideline, but they also check residual income: the money left each month after major expenses. A borrower above 41% can still qualify with enough residual income.
Sources
Read the guides
Related calculators
- Home affordability Turn your income, monthly debts and savings into a maximum home price, using the same debt-to-income test a mortgage lender uses.
- FHA MIP Work out the 1.75% upfront premium, the annual premium rate HUD assigns to your loan, the monthly cost and whether you pay it for 11 years or the life of the loan.
- Down payment savings Set a target home price and down payment, then see your savings goal, how far you are from it and how many months of saving it will take.
- FHA vs conventional Put the same home through both loan types and see which one costs less each month and over the years you plan to stay, with FHA mortgage insurance and conventional PMI both counted.