Debt-to-Income (DTI) Mortgage Ratio Calculator
Calculate front-end housing and back-end debt-to-income (DTI) ratios, mortgage qualification status, and lender 43% cap headroom.
Calculated Results
Frequently Asked Questions
What is the difference between Front-End and Back-End DTI?
Front-End DTI (the housing ratio) measures only your proposed housing expense (mortgage principal, interest, taxes, insurance, HOA) divided by gross monthly income. Back-End DTI includes housing plus all recurring debt payments (auto loans, student loans, minimum credit card payments, personal loans).
What is the ideal DTI ratio to qualify for a home mortgage?
The classic guideline is the 28/36 rule: front-end ratio should not exceed 28% and back-end total DTI should not exceed 36%. However, conventional loans routinely approve DTIs up to 43% to 45% with strong credit scores, and FHA loans permit DTIs up to 50%.
Do utility bills, groceries, or car insurance count toward DTI?
No. Lenders do not include living expenses like utilities, cellphone bills, car insurance, food, or subscriptions in your DTI calculation. Only legally obligated contractual debt payments reported on credit bureaus count.
How can you lower your DTI quickly before applying for a mortgage?
Pay off revolving credit card balances, pay down small installment loans with few remaining payments, refinance auto loans to lower monthly terms, or add a co-borrower with verifiable income.