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Debt-to-Income (DTI) Ratio Calculator for Homebuyers

When applying for a mortgage, lenders look at more than just your credit score. One of the most critical factors determining your eligibility and borrowing power is your Debt-to-Income (DTI) ratio. Your DTI represents the percentage of your gross monthly income that goes toward paying your monthly debt obligations.

Use our specialized DTI calculator below to determine both your front-end and back-end ratios to see where you stand before applying for a home loan.

Mortgage DTI Calculator

Include salary, bonuses, alimony, etc.
Estimated Mortgage Principal, Interest, Taxes, Insurance, and HOA.
Auto loans, student loans, minimum credit card payments, child support.
Front-End Ratio (Housing Only):
Back-End Ratio (Total Debt):
Lender Interpretation Status:

function calculateMortgageDTI() { // Get input values var incomeStr = document.getElementById('grossIncome').value; var housingStr = document.getElementById('housingExpense').value; var debtsStr = document.getElementById('monthlyDebts').value; // Parse values to floats var income = parseFloat(incomeStr); var housing = parseFloat(housingStr); var debts = parseFloat(debtsStr); // Validation: Income is required and must be positive if (isNaN(income) || income <= 0) { alert("Please enter a valid Gross Monthly Income greater than zero."); return; } // Treat empty or NaN housing/debts as 0 for calculation if (isNaN(housing)) { housing = 0; } if (isNaN(debts)) { debts = 0; } // Calculate Front-End Ratio (Housing / Gross Income) var frontEndRatio = (housing / income) * 100; // Calculate Back-End Ratio ((Housing + Debts) / Gross Income) var totalMonthlyObligations = housing + debts; var backEndRatio = (totalMonthlyObligations / income) * 100; // Display the results container document.getElementById('dtiResults').style.display = 'block'; // Output the ratios fixed to 2 decimal places document.getElementById('frontEndResult').innerHTML = frontEndRatio.toFixed(2) + "%"; document.getElementById('backEndResult').innerHTML = backEndRatio.toFixed(2) + "%"; // Determine interpretation message based on Back-End Ratio var messageText = ""; var messageColor = "#333"; // default black // Conventional loan standard guidelines commonly used as reference if (backEndRatio 36 && backEndRatio 43 && backEndRatio <= 50) { messageText = "Caution. You may still qualify for some loans (like FHA) but lenders view this as higher risk."; messageColor = "#ffc107"; // Yellow/Orange } else { messageText = "High Risk. A DTI over 50% makes it very difficult to qualify for a standard mortgage."; messageColor = "#dc3545"; // Red } // Update message and color var messageElement = document.getElementById('dtiMessage'); messageElement.innerHTML = messageText; messageElement.style.color = messageColor; }

Understanding Front-End vs. Back-End DTI

Lenders evaluate two specific types of DTI ratios during the mortgage underwriting process:

  • Front-End Ratio (Housing Ratio): This calculation only looks at your proposed housing expenses relative to your income. This includes the mortgage principal, interest, property taxes, homeowners insurance, and any HOA fees. Generally, lenders prefer this to be below 28%.
  • Back-End Ratio (Total Debt Ratio): This is the more important figure. It includes your proposed housing expense plus all other monthly recurring debt payments, such as car loans, student loans, and minimum credit card payments. Most conventional loans look for a back-end ratio under 43%, though some government-backed loans (like FHA) may allow higher ratios in certain circumstances.

How DTI Impacts Your Mortgage Application

Your DTI ratio is a primary indicator of your ability to repay a loan. A lower DTI shows lenders that you have sufficient income remaining after paying your debts to handle a new mortgage payment comfortably. Conversely, a high DTI suggests you might be overextended, increasing the lender's risk.

For example, if your gross monthly income is $6,000, and your total monthly debt obligations (including the new house payment) equal $2,400, your DTI is 40%. This falls within the acceptable range for most conventional loans.

Tips to Improve Your DTI Ratio

If your DTI is higher than lender guidelines (typically above 43%), consider these steps before applying:

  • Pay down existing debt: Focus on paying off high-interest credit cards or smaller loan balances to eliminate those monthly payments entirely.
  • Increase your income: Documented side income, bonuses, or a higher salary will lower your ratio.
  • Lower your housing budget: Searching for a less expensive home will reduce the proposed mortgage payment input, lowering both your front and back-end ratios.
  • Avoid taking on new debt: Do not finance a new car or make large purchases on credit while preparing to buy a home.

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