Debt-to-Income Ratio Calculator
Monthly Income & Debts
DTI Results
| Front-End DTI Ratio | — |
|---|---|
| Back-End DTI Ratio | — |
| Front-End Assessment | — |
| Back-End Assessment | — |
What is the Debt-to-Income (DTI) Ratio?
Your **Debt-to-Income (DTI)** ratio is a percentage that compares your monthly debt payments to your gross monthly income. Mortgage lenders use DTI to measure your ability to manage monthly payments and repay borrowed money.
The DTI Formulas
Lenders calculate two separate ratios:
- **Front-End DTI:** ***Housing Expenses / Gross Monthly Income × 100***
- **Back-End DTI:** ***(Housing Expenses + Other Debts) / Gross Monthly Income × 100***
DTI Limits and Readiness
A back-end DTI of **36% or less** is standard for most conventional mortgage programs. Some programs allow up to 43%, or even higher with compensating factors. A lower DTI ratio correlates with a lower borrowing risk and better loan terms.
Disclaimer. This calculator is for informational purposes only. Individual underwriting guidelines vary by loan program (e.g. FHA, VA, Conventional), credit score, and lender-specific overlays.