Mortgage MindscapeSmart Financial Calculators

Debt-to-Income Calculator

Calculate your DTI ratio to see if you qualify for a mortgage.

Income & Debts
Enter your monthly income and debt obligations

Monthly Debt Payments

Your Debt-to-Income Ratio
Total DTI (Back-End)40% - fair

$2,400 / $6,000

Housing DTI (Front-End)25%

$1,500 / $6,000

Recommendation

Your DTI is acceptable but may limit your loan options. Consider paying down debt.

Lender Guidelines:

  • • ≤ 28%: Excellent - Easily qualify
  • • 29-36%: Good - Most lenders approve
  • • 37-43%: Fair - May need compensating factors
  • • > 43%: High - Difficult to qualify

Understanding Debt-to-Income Ratio

Your debt-to-income ratio is one of the most important factors lenders consider when you apply for a mortgage. It shows how much of your income is already committed to debt payments.

Why DTI Matters

Lenders use DTI to assess your ability to manage monthly payments and repay borrowed money. A lower DTI indicates you have a good balance between debt and income, making you a less risky borrower.

What Debts Are Included?

  • Housing Costs: Mortgage/rent, property taxes, homeowners insurance, HOA fees
  • Installment Loans: Car loans, student loans, personal loans
  • Revolving Debt: Credit card minimum payments
  • Other Obligations: Child support, alimony

Note: Utilities, groceries, and other living expenses are NOT included in DTI calculations.

Frequently Asked Questions