Debt-to-income ratio (DTI) Calculator

DTI Calculation Results

Total Monthly Debts
Maximum Estimated Mortgage Payment:
Your Debt-to-Income Ratio (DTI)

Estimated home loan eligibility

Great job! You have a very good DTI, with plenty of income left over after your expenses."
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Your have a Good DTI. Better-Than-Average level of income left over after your expenses.
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Your DTI is to high, likely Not Eligible for a New Mortgage

Commonly asked questions about Debt-to-income (DTI) ratio

DTI ratio is a financial metric that compares your total monthly debt payments to your gross monthly income. It helps lenders assess your ability to manage new home loan payments.

The "Remaining" value in the DTI Calculation Results refers to the amount of your monthly income that is not allocated towards your total monthly debts and maximum estimated mortgage payment. It represents the funds available for other expenses or savings.

The "Maximum Estimated Mortgage Payment" in the DTI Calculation Results represents the highest monthly mortgage payment you can afford while maintaining a healthy Debt-to-Income (DTI) ratio. This calculation takes into account your total monthly debts and ensures that your overall financial health is maintained.

Divide your total monthly debt payments by your gross monthly income, then multiply by 100 to get a percentage. For example, if your debts are $1,500 and your income is $5,000, your DTI ratio is 30%.

Lenders use DTI ratio to determine if you can afford the additional mortgage payment alongside your existing debts. It's a key factor in the mortgage approval process.

Included debts vary, but they typically include mortgage, credit card payments, auto loans, student loans, alimony, and child support.

A high DTI ratio may indicate financial stress and reduce your chances of mortgage approval. Lenders might offer you a smaller loan or less favorable terms.

You can lower your DTI ratio by paying off existing debts, increasing your income, or reducing discretionary spending.

It's possible, but your options might be limited. Some lenders specialize in higher DTI ratios, but be prepared for stricter terms.

A good Front-End DTI ratio is generally around 28% or lower. This means your housing costs should not exceed 28% of your gross monthly income.

A good Back-End DTI ratio is typically 36% or lower. This includes all debt payments, not just housing costs.

The lower the DTI ratio, the better. Most lenders prefer a DTI ratio of 43% or lower, but some may allow higher ratios based on other factors.

The two types are Front-End DTI (housing-related costs) and Back-End DTI (all debt payments). Both are considered during the mortgage approval process.

Yes, FHA loans often allow for higher DTI ratios, up to 50% or more in some cases, depending on other factors.

Yes, some loan programs and lenders may consider other compensating factors, such as high credit scores or substantial down payments, when evaluating DTI ratios.

Yes, calculating your DTI ratio beforehand gives you an idea of how much you can afford and helps you make informed financial decisions.