Debt-to-Income (DTI) Calculator
Calculate your debt-to-income ratio to understand your borrowing capacity and improve your chances of mortgage approval.
Monthly Income
Enter your gross monthly income before taxes and deductions
Your salary or wages before taxes
Bonuses, commissions, rental income, etc.
Monthly Housing Expenses
Your proposed mortgage and related housing costs (PITI + HOA)
Principal and interest only
If applicable
Other Monthly Debt Payments
Include all recurring monthly debt obligations
Alimony, child support, other obligations
Your DTI Ratios
How lenders evaluate your debt capacity
Housing costs ÷ Gross income: $0 ÷ $0
Total debts ÷ Gross income: $0 ÷ $0
DTI Guidelines:
Quick Tips
Most lenders prefer back-end DTI below 43%
Lower DTI = better interest rates and loan terms
Pay down debts to improve your DTI ratio
Include ALL recurring monthly obligations
Understanding Debt-to-Income Ratio
What is DTI?
Your debt-to-income ratio (DTI) is a percentage that shows how much of your gross monthly income goes toward paying debts. Lenders use this metric to assess your ability to manage monthly payments and repay borrowed money. A lower DTI indicates better financial health and makes you a more attractive borrower.
Front-End DTI
Also called the "housing ratio," this measures your housing costs (mortgage, property tax, insurance, HOA) against your gross income.
Ideal: Below 28%
Back-End DTI
This includes ALL your monthly debt obligations plus housing costs. This is the primary ratio most lenders consider.
Ideal: Below 36% (max typically 43%)
How to Improve Your DTI
- •Pay down existing debts: Focus on high-interest credit cards and small balances first
- •Increase your income: Take on additional work, request a raise, or add a co-borrower
- •Avoid new debt: Don't open new credit accounts or make large purchases before applying
- •Consider a larger down payment: This reduces your mortgage amount and housing costs
- •Refinance existing loans: Lower interest rates can reduce monthly payments