Debt-to-Income Ratio Calculator

DTI = Total monthly debt payments / Gross monthly income. Lenders use it to assess your ability to manage monthly payments. Front-end DTI includes only housing costs. Back-end DTI includes all debt. For mortgage approval, most lenders focus on back-end DTI.

Conventional loans: ideally under 36%, maximum 45% (some up to 50% with strong compensating factors). FHA loans: maximum 43% (sometimes up to 57% with strong credit and reserves). VA loans: no official limit, but 41% is a benchmark. Lower is always better for getting approved and getting good rates.

Front-end (housing ratio): just your PITI (Principal, Interest, Taxes, Insurance) divided by gross income. Most lenders want this under 28%. Back-end (total DTI): all monthly debt including housing, car loans, student loans, minimum credit card payments. Keep under 36-43%.

Two approaches: reduce debt or increase income. Pay off small debts first to eliminate minimum payments. Pay down credit cards to lower minimums. Refinance student loans for lower payments. Consider a co-borrower with income. Increase income through raises, second job, or side income. Avoid taking on new debt before applying.

DTI does not directly set rates, but indirectly affects them. High DTI may push you toward FHA loans vs. conventional (which may have higher costs). Very high DTI can result in denial regardless of credit score. Lenders price risk holistically: DTI + credit score + down payment + reserves all factor in.