Loan-to-Income Ratio Calculator

Loan-to-Income (DTI) Ratio Calculator

Your Financial Inputs

Gross Annual Income ($):

Monthly Housing Expenses (Proposed or Current)

Estimated Principal & Interest (P&I) ($):

Monthly Property Taxes ($):

Monthly Homeowners Insurance ($):

Monthly HOA Dues / Condo Fees ($) (If applicable):

Other Monthly Debt Payments

Monthly Car Loan Payments ($):

Monthly Student Loan Payments ($):

Total Monthly Minimum Credit Card Payments ($):

Other Monthly Debt Payments ($) (e.g., personal loans, alimony):

DTI Analysis Results

Calculated Monthly Values:

Gross Monthly Income:

Total Monthly Housing Payment (PITI + HOA):

Total Other Monthly Debts:

Total All Monthly Debt Payments:

Debt-to-Income Ratios:

Front-End DTI Ratio (Housing Ratio):

Back-End DTI Ratio (Total Debt Ratio):

Understanding Your DTI Ratios:

Debt-to-Income (DTI) ratios help lenders assess your ability to manage monthly payments and repay debts. Lower DTI ratios are generally preferred.

Front-End DTI (Housing Ratio): This is the percentage of your gross monthly income that goes towards housing costs (Principal, Interest, Taxes, Insurance - PITI, plus HOA fees if applicable). Lenders often prefer this to be below 28-31%, but limits vary.
Back-End DTI (Total Debt Ratio): This is the percentage of your gross monthly income that goes towards *all* your monthly debt obligations, including housing and other debts like car loans, student loans, and credit card minimum payments. Lenders often prefer this to be below 36-43%. Some programs may allow up to 45-50% under certain conditions.

General Guidelines (these can vary significantly by lender, loan type, and your overall financial profile):

Back-End DTI ≤ 35%: Generally viewed as good; you likely have a manageable amount of debt.
Back-End DTI 36% to 43%: Often acceptable, but you may have less room for new debt. This is a common threshold for many mortgage programs.
Back-End DTI 44% to 49%: May indicate potential financial stress. Qualifying for new loans, especially mortgages, can become more difficult.
Back-End DTI ≥ 50%: Generally considered high; indicates a significant portion of your income is going to debt payments, which can make it hard to manage finances and obtain new credit.

This calculation is for informational purposes only and is not a loan pre-qualification or financial advice. Lenders use various criteria for loan approval.