DTI Calculator

Debt-to-income ratio (DTI) is one of the most important factors lenders use to determine whether you qualify for a mortgage. Our DTI calculator helps loan officers, mortgage brokers, and borrowers quickly assess qualification status before diving into a full application.

There are two types of DTI ratios that lenders consider. The front-end ratio (also called the housing ratio) compares your proposed monthly housing payment to your gross monthly income. The back-end ratio compares your total monthly debt payments—including housing, car loans, credit cards, and student loans—to your gross monthly income. Most lenders focus primarily on the back-end ratio.

Different loan programs have different DTI requirements. Conventional loans typically allow up to 43-45% back-end DTI, though some programs accept up to 50% with compensating factors like excellent credit or significant reserves. FHA loans generally cap at 43% but can go higher with strong compensating factors. VA loans are more flexible, often approving DTIs above 50% for qualified veterans.

For loan officers, having a DTI calculator readily available speeds up the pre-qualification process. Instead of pulling out a calculator or spreadsheet during every client call, you can instantly assess whether a borrower is in the qualifying range. This helps set expectations early and identifies potential issues before investing time in a full application.

Understanding DTI also helps borrowers make strategic decisions. If your DTI is too high, you might consider paying down credit card debt before applying, adding a co-borrower, or looking at a less expensive property. Sometimes a small reduction in monthly debt payments can make the difference between approval and denial.

It's worth noting that DTI is just one piece of the qualification puzzle. Lenders also consider credit score, down payment, reserves, employment history, and the overall loan profile. A borrower with a 44% DTI but excellent credit and substantial reserves might be a better risk than someone with 38% DTI and minimal savings.