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Debt-to-Income Ratio Calculator

Front-end and back-end DTI scored against the real conventional, FHA and VA underwriting limits, with the debt to clear to reach your target ratio.

Debt-to-Income Ratio Calculator: with the default inputs, back-end dti (all debts) is 40.3%.

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Try an example
Back-end DTI (all debts)
40.3%

Housing plus every other monthly debt, over gross monthly income. This is the ratio lenders mean by 'DTI'.

Front-end DTI (housing only)
30%
Conventional (Fannie Mae)
Possible manually — above 36%, so it needs the credit score and reserves Fannie Mae requires to stretch to 45%.
FHA
Inside the base 31/43 ratios — no compensating factors required.
VA
Inside VA's 41% guideline. The residual-income test still applies and is the one that fails more files.
Total monthly debt payments
$3,220
Non-housing debt payments
$820
Monthly debt to clear to hit your target
$0
…or extra gross monthly income instead
$0
Housing payment your target allows
$2,620
Assumptions
  • Conventional thresholds are Fannie Mae Selling Guide B3-6-02 (topic last updated 2 April 2025): 36% manual, 45% manual with credit score and reserves, 50% through Desktop Underwriter. Freddie Mac's limits are similar but not identical.
  • FHA thresholds are HUD Handbook 4000.1, II.A.5, Approvable Ratio Requirements (Manual): 31/43 base, 37/47 with one compensating factor, 40/40 with no discretionary debt, 40/50 with two.
  • The VA figure is the 41% debt-to-income standard in 38 CFR 36.4340(c); VA's regional residual-income test is not modelled and often binds first.
  • The Qualified Mortgage rule no longer imposes a 43% DTI cap — 12 CFR 1026.43(e)(2) is price-based.
  • Income is gross, before tax. Lenders may count documented bonus, overtime and self-employment income differently and apply their own overlays.
  • Student-loan payments are taken as entered; programmes differ on how to treat deferred or income-driven payments.
Your debt and income against the underwriting limits
$0$2k$4k$6k4,0006,0008,00010,00012,000Comfortable 36%VA 41%FHA 43%DU 50%No programmeYou · 40.3%Gross monthly incomeTotal monthly debtYour debt and income against the underwriting limits
Where your monthly debt goes
  • Housing (PITI + HOA)$2,40075%
  • Car loans and leases$45014%
  • Student loans$2508%
  • Credit card minimums$1204%
Each debt as a share of gross income
ObligationMonthly% of gross income
Housing (PITI + HOA)$2,40030%
Car loans and leases$4505.6%
Student loans$2503.1%
Credit card minimums$1201.5%
Underwriting limits these results are scored against
ProgrammeLimitSource
Conventional, manually underwritten36% total DTI, up to 45% with credit score and reservesFannie Mae Selling Guide B3-6-02
Conventional, Desktop Underwriter50% total DTIFannie Mae Selling Guide B3-6-02
FHA, manually underwritten31/43; 37/47 with one compensating factor; 40/40 with no discretionary debt; 40/50 with twoHUD Handbook 4000.1, II.A.5
VA41% plus a regional residual-income test38 CFR 36.4340(c)
Qualified Mortgage (Reg Z)No DTI cap — the general QM definition is price-based12 CFR 1026.43(e)(2)
Math verified by automated testsUpdated 2026-09-093 sources cited

How this is worked out

The formula

Front-end DTI = housing payment ÷ gross monthly income
Back-end DTI = (housing payment + all other monthly debt payments) ÷ gross monthly income
Debt to clear for a target = total debt − gross income × target
Extra income for a target = total debt ÷ target − gross income

Open How it’s calculated above to see this worked through with your own numbers.

What you enter

Gross monthly income
Before tax, including reliable bonus and overtime a lender would count.in dollars · 0 or more · defaults to 8000
Housing payment
Proposed principal, interest, taxes, insurance, mortgage insurance and HOA — or your rent if you are not buying.in dollars · 0 or more · defaults to 2400
Car loans and leases
A number.in dollars · 0 or more · defaults to 450
Student loans
Use the payment on your credit report. Deferred loans still count under most programmes.in dollars · 0 or more · defaults to 250
Credit card minimum payments
The minimum due, not what you usually pay.in dollars · 0 or more · defaults to 120
Personal and other instalment loans
A number.in dollars · 0 or more · defaults to 0
Alimony and child support(under More options)
A number.in dollars · 0 or more · defaults to 0
Other monthly obligations(under More options)
Court-ordered judgments, co-signed loans you are liable for.in dollars · 0 or more · defaults to 0
Target back-end DTI(under More options)
The calculator works out the debt to clear or the income to add to reach it.a percentage · from 1 to 100 · defaults to 43

What you get back

Back-end DTI (all debts)main answer
Housing plus every other monthly debt, over gross monthly income. This is the ratio lenders mean by 'DTI'.
Front-end DTI (housing only)
Conventional (Fannie Mae)
FHA
VA
Total monthly debt payments
Non-housing debt payments
Monthly debt to clear to hit your target
…or extra gross monthly income instead
Housing payment your target allows
At your current non-housing debts.

What this assumes

  • Conventional thresholds are Fannie Mae Selling Guide B3-6-02 (topic last updated 2 April 2025): 36% manual, 45% manual with credit score and reserves, 50% through Desktop Underwriter. Freddie Mac's limits are similar but not identical.
  • FHA thresholds are HUD Handbook 4000.1, II.A.5, Approvable Ratio Requirements (Manual): 31/43 base, 37/47 with one compensating factor, 40/40 with no discretionary debt, 40/50 with two.
  • The VA figure is the 41% debt-to-income standard in 38 CFR 36.4340(c); VA's regional residual-income test is not modelled and often binds first.
  • The Qualified Mortgage rule no longer imposes a 43% DTI cap — 12 CFR 1026.43(e)(2) is price-based.
  • Income is gross, before tax. Lenders may count documented bonus, overtime and self-employment income differently and apply their own overlays.
  • Student-loan payments are taken as entered; programmes differ on how to treat deferred or income-driven payments.

About this calculator

Debt-to-income is the ratio that decides mortgage applications. Not your credit score, not your savings — the share of your gross monthly income already committed to debt payments. Lenders compute two of them: the front-end ratio, which is just the housing payment, and the back-end ratio, which adds every other debt. When someone says "your DTI", they mean the back-end.

The thresholds, from the actual rulebooks

Conventional. Fannie Mae's manual-underwriting maximum is 36% of stable monthly income, extendable to 45% for borrowers who meet its credit-score and reserve requirements. Loans run through Desktop Underwriter can go to 50%. Those figures are from Selling Guide B3-6-02, not folklore.

FHA. HUD publishes a matrix, not a single number: 31/43 with no compensating factors; 37/47 with one (documented reserves, a minimal increase in housing payment, or residual income); 40/40 with no discretionary debt; and 40/50 with two compensating factors. Borrowers below a 580 credit score cannot exceed 31/43 at all.

VA. 41%, from 38 CFR 36.4340 — but VA is the one programme that also runs a residual income test, a regional dollar figure of what must be left over after all obligations. Files fail that test more often than the ratio, and a strong residual income can justify a DTI well above 41%.

One widely repeated claim is now wrong: there is no 43% cap in the Qualified Mortgage rule. The general QM definition at 12 CFR 1026.43(e)(2) has been price-based since the GSE patch expired; the 43% figure survives as a rule of thumb, not a regulation.

How to use it

Enter your gross monthly income and each debt separately — use the minimum due on cards, not what you normally pay, because that is what the credit report shows. For a purchase, put the proposed payment including taxes, insurance, mortgage insurance and HOA in the housing field, not your current rent. Set a target under More options and the calculator reports both routes to it: the monthly debt to clear, and the additional income that would do the same job.

Reading the results

  • Debt to clear is per month of payment, not per dollar of balance. Paying off a $4,000 card with a $120 minimum removes $120 from the numerator; paying $4,000 off a $30,000 car loan may remove nothing, because the payment does not change. Retire whole accounts, smallest payment first, when you are ratio-shopping.
  • Housing payment your target allows is what to hand your agent as a ceiling.

What this does not model

Lenders count some income you might not (documented bonus, overtime and self-employment averaged over two years) and exclude some you would (income you cannot document for 24 months). Student loans are treated differently across programmes — some use 0.5% or 1% of the balance when the payment is $0 or income-driven. Accounts with fewer than ten payments left are often excluded conventionally. And every one of these figures is an agency guideline; individual lenders layer stricter overlays on top and are entitled to.

Frequently asked questions

What is a good debt-to-income ratio?

Under 36% passes everywhere and leaves room to live. Between 36% and 43% is normal and financeable. Above 43% you are relying on automated underwriting, compensating factors or VA residual income, and above 50% no mainstream conventional loan is available.

What is the difference between front-end and back-end DTI?

Front-end counts only the housing payment — principal, interest, taxes, insurance, mortgage insurance and HOA. Back-end adds car loans, student loans, credit-card minimums, alimony and child support. FHA tests both; conventional underwriting mostly cares about the back-end.

Is 43% still the maximum DTI for a mortgage?

No. That number came from the old Qualified Mortgage rule, which has been price-based rather than DTI-based since the GSE patch expired. Fannie Mae allows up to 50% through Desktop Underwriter and FHA's matrix reaches 40/50 with two compensating factors.

What counts as debt in the calculation?

Anything that appears as a recurring payment obligation: mortgage or rent, car loans and leases, student loans, credit-card minimums, personal loans, court-ordered alimony and child support. Utilities, groceries, insurance premiums, phone bills and taxes are not counted.

How do I lower my DTI quickly?

Eliminate whole payments rather than shaving balances — paying off the smallest-payment account removes the most ratio per dollar. Paying down a card to reduce its minimum helps a little; refinancing a car to a longer term lowers the payment and the ratio, at the cost of more interest.

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