Debt-to-Income (DTI) Ratio Calculator
Calculate your back-end DTI ratio, the primary measure lenders use to assess mortgage eligibility.
Results
What is it?
The Debt-to-Income (DTI) ratio compares your total monthly debt obligations to your gross (pre-tax) monthly income. It is the primary metric lenders use to decide whether you can afford a mortgage. Front-end DTI covers housing costs only; back-end DTI (calculated here) covers all debts.
How to use
Add up all monthly debt payments including the proposed mortgage (PITI), car loans, student loans, and minimum credit card payments. Enter that total and your gross monthly income. DTI below 36% is excellent; 36-43% is acceptable; above 43% typically disqualifies for Qualified Mortgage loans.
Example scenario
Monthly debts of $1,800 (including proposed $1,200 mortgage) on gross income of $5,500/month: DTI = 32.7%, well within the 36% guideline.
Pro tip
Under the CFPB Qualified Mortgage rule, most lenders cap back-end DTI at 43%. To improve DTI: pay down revolving debt before applying, avoid opening new credit accounts, or add a co-borrower.