Debt-to-Income Ratio Calculator
For Prospective Homebuyers | Equal Housing Opportunity
What is DTI?
Your Debt-to-Income (DTI) ratio compares your total monthly debt payments to your gross monthly income. Lenders use this figure to assess your ability to manage monthly payments. Most conventional loans require a DTI of 43% or below; FHA loans may allow up to 50% with compensating factors.
Borrower Information
Step 1: Gross Monthly Income
Enter income before taxes and deductions.
| Income Source | Borrower ($) | Co-Borrower ($) |
|---|---|---|
| Base Salary / Wages | ||
| Overtime / Bonus | ||
| Self-Employment Income | ||
| Rental / Investment Income | ||
| Social Security / Pension | ||
| Child Support / Alimony (if counted) | ||
| Other Income | ||
| Total Gross Monthly Income (A) | $0 | $0 |
Step 2: Monthly Debt Obligations
Include minimum monthly payments only.
| Debt / Obligation | Borrower ($) | Co-Borrower ($) |
|---|---|---|
| Proposed Housing Payment (PITI) | ||
| Car Loan(s) | ||
| Student Loans | ||
| Credit Card Minimum Payments | ||
| Personal Loans | ||
| Child Support / Alimony Payments | ||
| Other Monthly Obligations | ||
| Total Monthly Debt Payments (B) | $0 | $0 |
Step 3: Your DTI Ratio
Formula: DTI Ratio = Total Monthly Debt Payments (B) ÷ Total Gross Monthly Income (A) × 100
Total Gross Monthly Income (A)$0
Total Monthly Debt Payments (B)$0
Front-End Ratio (Housing ÷ Income)—
Back-End DTI Ratio
—
Enter values
Step 4: Interpret Your Results
| DTI Range | Assessment | Likely Loan Types |
|---|---|---|
| Under 20% | Excellent | Conv / FHA / VA / USDA |
| 20% – 35% | Good | Conv / FHA / VA / USDA |
| 36% – 43% | Acceptable | Conv / FHA / VA |
| 44% – 50% | Marginal (FHA only) | FHA (w/ factors) |
| Over 50% | Likely Ineligible | Consult lender |
Tips to Improve Your DTI
- Pay down existing debt before applying
- Avoid taking on new loans or credit cards
- Increase your gross income if possible
- Consider a less expensive home or larger down payment
- Ask about gift funds to reduce your loan amount
Notes
This worksheet is for educational purposes only and does not constitute a loan commitment or guarantee of approval. Consult a licensed mortgage professional for personalized guidance. | Equal Housing Opportunity
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Rachel Gibson
Broker | License ID: 306317
2817 Heather Row RDG SW, Lilburn, Georgia, 30047, United States