Debt-to-Income Calculator
Calculate your debt-to-income (DTI) ratio — a key number lenders check for mortgage approval.
What this calculator does
Calculates your debt-to-income (DTI) ratio — the percentage of your gross monthly income that goes toward debt payments — which lenders use as a core factor in mortgage and loan approval decisions.
Who this is for
Anyone preparing to apply for a mortgage or major loan, checking their DTI before house-hunting to understand what they can realistically qualify for, or wanting to see how paying down a specific debt would improve their ratio.
How this calculator works
DTI = total monthly debt payments ÷ gross monthly income. Most conventional US mortgage lenders want to see DTI at or below 36%, with some allowing up to 43-50% for well-qualified borrowers.
Worked example
Gross monthly income of $6,000 with $2,100 in total monthly debt payments (rent, car loan, credit card minimums): DTI = 2,100 ÷ 6,000 = 35% DTI — just inside the 36% threshold most conventional lenders look for, though individual lender requirements vary.
DTI Limits by Loan Type
| Loan Type | Standard Limit | With Compensating Factors |
|---|---|---|
| Conventional | 36-45% | Up to 50% with automated underwriting approval |
| FHA | 31% front-end / 43% back-end | Up to 50-57% with strong compensating factors |
| VA | No hard cap — 41% is a common benchmark | Often approved above 50%, based on residual income rather than a fixed ratio |
| USDA | 29% front-end / 41% back-end | Slightly higher with automated underwriting |
| Jumbo | 43-45% | Up to 50% for some jumbo programs |
The 36% figure most people hear cited is really a conservative reference point, not a universal cutoff — actual approval depends heavily on the specific loan program, your credit score, cash reserves, and whether the lender uses automated underwriting. VA loans in particular don't use a fixed percentage cap at all, relying instead on a "residual income" test that checks whether enough money is left over each month after debts and estimated living expenses, regardless of the DTI percentage itself.
Debt vs. remaining income
Run the calculator above to see the debt vs. remaining income split of your gross monthly income.
Common mistakes
- Using net (take-home) income instead of gross. DTI is always calculated against gross monthly income, not what actually lands in your bank account.
- Forgetting minimum credit card payments. Lenders count the minimum payment on revolving debt, not your actual monthly payment if you pay more than the minimum.
- Leaving out debts not yet reported. A new car loan or personal loan not yet on your credit report still counts if a lender asks about it directly.
- Confusing front-end and back-end DTI. Front-end DTI only counts housing costs; back-end DTI (the more commonly quoted figure, and what this calculator computes) includes all monthly debt obligations, not just housing.
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Frequently Asked Questions
What's the difference between front-end and back-end DTI?
Front-end DTI only counts housing-related costs (mortgage or rent, property tax, insurance) against income. Back-end DTI — what this calculator computes — includes all monthly debt obligations: housing, car loans, student loans, credit card minimums, and any other recurring debt payment.
What DTI ratio do lenders want?
Most conventional mortgage lenders prefer 36% or below, though some programs allow up to 43-50% for well-qualified borrowers. Lower is generally better for approval odds and interest rate offers.
Does DTI use gross or net income?
Gross (pre-tax) monthly income, not your take-home pay. This is a common point of confusion since it makes the ratio look more favorable than a net-income calculation would.
What counts as debt in this calculation?
Rent or mortgage, car loans, minimum credit card payments, student loans, and other recurring debt obligations. Regular expenses like groceries, utilities, or insurance don't count toward DTI.
Do VA loans have a maximum DTI?
Not a fixed percentage cap — VA loans instead use a "residual income" test, checking whether enough money is left over each month after debts and estimated living expenses. 41% is a commonly cited benchmark, but approvals well above that are common with strong residual income.
Can I get an FHA loan with a DTI above 43%?
Yes — FHA's standard guideline is 43%, but automated underwriting can approve borrowers up to 50-57% with strong compensating factors like a high credit score, additional cash reserves, or extra income sources.