Mortgage Pre-Qualification

Debt-to-Income (DTI) Calculator

Check your DTI ratio to see if you qualify for a mortgage. Lenders use this key metric to assess your borrowing capacity.

Income & Debts

Enter your monthly income and debt payments

Monthly Income

Housing Expenses (Monthly)

Other Monthly Debts

What is Debt-to-Income Ratio?

Debt-to-income (DTI) ratio is a personal finance measure that compares your monthly debt payments to your gross monthly income. Lenders use DTI to evaluate your ability to manage monthly payments and repay borrowed money. A lower DTI shows a good balance between debt and income.

DTI Ratio Types

  • Front-End DTI: Housing expenses ÷ Gross income (typically max 28% for conventional)
  • Back-End DTI: All monthly debts ÷ Gross income (typically max 36-43% depending on loan type)

DTI Requirements by Loan Type

  • Conventional: 28 percent front-end, 36 percent back-end, with some flexibility up to 45 percent
  • FHA: 31 percent front-end, 43 percent back-end, up to 50 percent with compensating factors
  • VA: no strict front-end limit, 41 percent back-end guideline

Worked example

Suppose you earn 6,000 dollars a month before taxes and carry 400 dollars in car payments and 200 dollars in minimum credit card payments, so 600 dollars of non-housing debt. If your expected mortgage, taxes, and insurance total 1,500 dollars, your front-end DTI is 1,500 divided by 6,000, or 25 percent, and your back-end DTI is 2,100 divided by 6,000, or 35 percent. Both sit under the common 28 and 36 percent limits, so a conventional lender would likely see this as a comfortable file. Pay off that car loan and your back-end DTI drops to about 28 percent, opening room for a larger loan.

Why lenders rely on DTI

DTI is one of the strongest predictors of whether a borrower can sustain payments, which is why it sits at the center of mortgage underwriting alongside credit score and down payment. A low DTI signals cushion in your budget, while a high DTI signals that a job loss or rate change could strain repayment. Knowing your ratio before you apply lets you fix it in advance, either by paying down debt or adjusting the price range you shop in.

Frequently asked questions

What is a good debt-to-income ratio to buy a house?

Most lenders prefer a back-end DTI at or below 36 percent, though many programs allow more. A DTI under 36 percent is considered strong, 37 to 43 percent is acceptable for many loans, and above 43 percent starts to limit your options. The lower your DTI, the more comfortably you qualify and the more room you have in your monthly budget after the mortgage.

What is the difference between front-end and back-end DTI?

Front-end DTI counts only your housing payment against gross monthly income, typically capped near 28 percent. Back-end DTI counts all monthly debt, including the mortgage, car loans, student loans, and minimum credit card payments, usually capped near 36 to 43 percent. Lenders look at both, and you qualify against whichever limit you reach first.

What is the maximum DTI for an FHA or VA loan?

FHA loans commonly allow up to 43 percent back-end DTI, and up to about 50 percent with compensating factors such as strong credit or cash reserves. VA loans have no strict front-end limit and use a 41 percent back-end guideline alongside a residual income test. Conventional loans usually target 36 percent but can stretch to 45 percent for well-qualified borrowers.

What debts are included in a DTI calculation?

DTI includes your projected housing payment plus recurring monthly debts: auto loans, student loans, personal loans, minimum credit card payments, and court-ordered payments like child support. It does not include everyday expenses such as utilities, groceries, or insurance that is not escrowed. Paying off a small installment loan can lower your DTI enough to change what you qualify for.

How can I lower my debt-to-income ratio?

You can lower DTI by paying down debt, avoiding new loans before applying, and increasing documented income. Paying off a car loan or a credit card balance removes its monthly payment from the calculation, which often moves the needle more than a small raise. Making a larger down payment also helps by reducing the housing payment side of the ratio.

Related calculators

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