Debt-to-Income Ratio Calculator

For conventional mortgages, lenders generally prefer a back-end DTI of 36% or lower, though some allow up to 43% or even 50% with strong compensating factors like excellent credit or large reserves. FHA loans allow up to 43% (sometimes 50%), and VA loans have no hard cap but typically prefer under 41%.

Front-end DTI counts only housing costs (mortgage payment, property tax, insurance, HOA) divided by gross income. Back-end DTI includes all monthly debt obligations — housing plus car loans, student loans, credit card minimums and other recurring debts — divided by gross income. Lenders look at both but back-end DTI is typically the binding constraint.

Add up all your minimum monthly debt payments (housing, car, student loans, credit cards, personal loans). Divide that total by your gross monthly income (before taxes). Multiply by 100 to get a percentage. For example, $2,000 in monthly debts divided by $6,000 gross monthly income equals a 33% DTI.

Current rent is not included in the DTI calculation for a new mortgage because it will be replaced by the mortgage payment. However, if you will keep paying rent somewhere (e.g., for an investment property purchase while renting your primary home), the ongoing rent payment may be included.

Pay down existing debts (especially high-payment items like car loans), increase your income, avoid taking on new debt before applying, and consider a longer loan term to reduce monthly payments. Paying off a $400/month car loan can shift your DTI by several percentage points.

Yes. The front-end DTI includes your full housing payment: principal, interest, property taxes, homeowner's insurance and any HOA fees (often called PITIA). Back-end DTI adds all other debts on top of that full housing payment.