DTI Ratio
1250:1
DTI Percentage
125000%
How it works
The Debt-to-Income Ratio Calculator computes your DTI — the percentage of your monthly gross income consumed by debt payments. Lenders use DTI as a primary mortgage and loan qualification metric. Enter all monthly debt payments and your gross monthly income to see your DTI and how it compares to lending thresholds.
DTI is the single most important number in mortgage underwriting. Conventional mortgages (Fannie/Freddie) require a DTI of 45% or below. FHA loans allow 57% in some cases. VA loans are more flexible. Jumbo loans typically require 43% or below. Knowing your DTI before applying for a mortgage helps you understand how much debt to pay down to qualify.
How to use it: enter your gross monthly income (before taxes) and all monthly debt payments: mortgage/rent, auto loans, student loans, minimum credit card payments, personal loans, child support/alimony. The calculator shows: - Front-end DTI (housing-only): monthly housing payment / gross income (most lenders want below 28%) - Back-end DTI (total debt): all debt payments / gross income (most lenders want below 43–45%) - How much mortgage you qualify for at the current DTI
Improvement strategies: the calculator shows how paying off specific debts changes your DTI. Paying off a $350/month car payment with 8 months left reduces DTI immediately — which may be more efficient than a larger down payment to qualify for a larger mortgage.
DTI thresholds by loan type: conventional (45%), FHA (57%), VA (41% guideline, flexible), jumbo (43%), personal loans (40–45%).
Privacy: income and debt data runs in the browser.
Frequently Asked Questions
- Conventional loans (Fannie Mae/Freddie Mac): maximum 45% back-end DTI (50% with compensating factors). FHA loans: maximum 43% standard, up to 57% with compensating factors. VA loans: 41% guideline, but flexible. Jumbo loans: typically 43% maximum, sometimes 38% for very large loans. Lower DTI → better terms → lower interest rate in most cases.
- Your current rent counts in the back-end DTI for mortgage qualification purposes. However, once you get the mortgage, the monthly mortgage payment replaces your rent in the calculation. Lenders use the proposed housing payment (PITI: principal, interest, taxes, insurance) not your current rent when calculating front-end DTI for the new mortgage.
- DTI includes only monthly debt payments: minimum credit card payments, loan installments, lease payments, alimony, and child support. Annual expenses like car insurance, health insurance (unless it's a debt), and property tax are not included in the DTI calculation — though lenders may factor them into affordability analysis separately.
- Pay off small debts first to eliminate monthly payments entirely (paying off a $200/month car payment with 6 months left reduces DTI immediately). Avoid taking on new debt for 6+ months before applying. Don't apply for new credit cards (hard inquiries can slightly affect score, and new credit lines could be used to add debt). Increase income by adding documented side income.