What is Debt-to-Income Ratio Calculator?
Evaluates borrower leverage by dividing recurring monthly debt obligations by gross monthly income.
How to Use This Calculator
- Enter gross monthly income.
- Enter prospective housing payment.
- Enter auto, student loan, and credit card payments.
- Check front-end and back-end DTI against lender approval limits.
The Mathematical Formula & Variables
DTI % = (Monthly Debt Obligations / Gross Monthly Income) * 100%
Step-by-Step Worked Example
Scenario: $8,000 income: $1,800 housing + $450 car + $350 student loans ($2,600 total debts).
- Front-end = 1,800 / 8,000 = 22.5%.
- Back-end = 2,600 / 8,000 = 32.5%.
- Both well below standard 28/36 underwriting limits.
Result: 32.50% Back-End DTI
Frequently Asked Questions
What is the maximum allowed DTI for a mortgage?
Conventional conforming loans generally cap back-end DTI at 43% to 45%, while FHA loans can accept up to 50% with compensating factors.