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Debt-to-Income Calculator Help

Our debt-to-income calculator takes into account your annual income and monthly debts to determine your debt-to-income ratio, which is one of the ways lenders use to determine whether you are eligible for a mortgage. Here's the info you’ll need to enter into the DTI calculator:

  • Annual Income

    Enter your annual income before taxes, for you and your co-borrower. Include all income including base salary, commissions, bonuses, tips, and investment income.

  • Minimum Credit Card Payments

    Enter total amount of minimum credit card payments that you pay each month. Do not include credit card balances that you pay off in full each month.

  • Loan Payments

    Enter the total amount of any monthly car payments student loan payments. Do not include loan balances that you pay off in full.

  • Alimony/Child Support Payments

    Click "See more" for more options to enter monthly debts, such as alimony or child support payments that you pay every month.

  • Vacation/Rental Costs

    You'll also find options to enter mortgage payments and maintenance costs for any vacation or rental property that you may own.

  • Other Loan Obligations

    Enter any other monthly payments that qualify as debt, such as personal loans. Do not include monthly living expenses or your current mortgage or rent payments.

Debt-to-Income FAQs

What is a debt-to-income ratio (DTI)?

DTI is used to determine how much home a person qualifies for. It's one of the things lenders look at when determining whether to qualify you for a loan, in addition to things like credit score, total assets, and loan-to-value (LTV) ratio. The lower your DTI, the more appealing you are to lenders.

What's the difference between front end and back end ratios?

Your back end debt-to-income ratio, which is what this calculator uses, is your minimum monthly debt payments divided by your gross monthly income.

Your front end debt-to-income ratio is your total mortgage payment (including your principal, interest, taxes, homeowners insurance, mortgage insurance and HOA, if applicable) divided by your gross monthly income.

What are the current DTI limits?

Debt-to-income limits vary by loan type:

Conventional loans.

Front end: N/A

Back end: 50%

FHA loans

Front end: typically 31%

Back end: 43% for credit scores below 620 or less. 50% (or higher in some cases) for credit scores above 620.

VA loans

Front end: N/A

Back end: Typically 41%

USDA loans

Front end: Typically 29% to 32%

Back end: Typically 41%, but can go up to 44%

What is "minimum monthly debt?"

The minimum monthly debt is the total minimum you have to pay each month and includes payments such as car payment, student loans, and credit card payments. Add up each of these minimum monthly payments and that is your monthly debt. (Note: If you pay more than the minimum amount on your credit cards, this does not count against your DTI, since only the minimum amount you're required to pay is included in the total.)

For example, if you owe $5,000 on a high-interest credit card and your minimum monthly payment on that card is $100, then $100 is the figure used for your DTI.

How do I calculate my DTI?

To calculate your own DTI, simply add up your minimum monthly debt and divide it by your gross monthly income.

EXAMPLE:

Gross monthly income: $1,000.

Monthly debt: $300 (car payment of $250 and credit card minimum payment $50 = $300)

300 / 1000 = 0.3, or 30%

Your DTI is 30%

What's a good DTI?

In most cases, 50% is the highest debt-to-income ratio that a homebuyer can have. However, having DTI ratio of 36% or less is considered ideal. If the DTI is higher than 36 percent, it can be difficult to qualify for a mortgage. The lower your DTI, the more likely you will be able to afford a mortgage and the more loan options you'll have. A DTI of 20% or below is considered excellent.