Debt-to-Income (DTI) Ratio Calculator
Enter your monthly gross income, proposed PITI + HOA, and other debts to see front-end and back-end DTI. Compare with common caps (28/36, 31/43) and find a max affordable PITI.
Your monthly numbers
Results
Monthly breakdown
Results interpretation: DTI ranges & who this helps
- Front-end DTI measures housing cost (PITI + HOA) vs gross income. Many lenders reference ~28–31%.
- Back-end DTI includes housing plus other debts. Common caps are ~36–43% depending on program.
- Max PITI is the monthly housing payment you could target to remain at/under a selected cap.
- This tool is for shoppers sense-checking budgets and agents/LOs running quick pre-qual style math.
How this calculator works
Formulas, steps, and assumptions
Front-end DTI = (PITI + HOA) ÷ Gross Income. Back-end DTI = (PITI + HOA + Other Debts) ÷ Gross Income.
When you choose a guideline (e.g., 28/36), we compare your ratios against those caps. We also invert the formula to estimate a max affordable PITI that would keep you at/under the caps:
- Max PITI (front-end) = FE cap × Income − HOA
- Max PITI (back-end) = BE cap × Income − HOA − Other Debts
Assumptions: “Other debts” include items typically counted in underwriting (minimum card payments, auto/student loans, child support, alimony). Gross income is pre-tax. This is an educational estimate; programs and overlays vary.
Use cases & examples
Example 1 (Conventional-style 28/36): Income $9,500; PITI $2,400; HOA $120; other debts $650 → FE = 26.5%, BE = 33.4%. At 28/36 caps, max PITI ≈ $2,540.
Example 2 (FHA-style 31/43): Income $7,800; proposed PITI $2,100; HOA $0; other debts $400 → FE ≈ 26.9%, BE ≈ 32.1%. Max PITI (overall) ≈ $2,418.
Example 3 (VA-style 41 back-end): Income $6,500; PITI $1,900; HOA $75; other debts $500 → BE ≈ 38.1%. Max PITI at 41% back-end ≈ $2,090.
DTI Calculator — FAQ
What is a good DTI ratio for a mortgage?
It depends on the program. Conventional examples often use 28/36; FHA examples 31/43; VA often references 41% back-end with residual income tests.
What counts as “other monthly debts”?
Minimum credit card payments, auto/student loans, child support, alimony, and similar recurring obligations counted by lenders.
Is income before or after tax?
DTI is typically calculated using gross (pre-tax) income.
Does HOA go in front-end?
Yes—PITI plus HOA is used for the housing ratio (front-end).
How do I improve my DTI?
Lower the proposed payment (price or rate), pay down debts to reduce minimums, or increase verifiable income.
Are these caps strict rules?
No—actual underwriting can vary with compensating factors, credit, LTV, reserves, and program overlays.
Debt-to-Income (DTI) Ratio: How Lenders Use It—and How to Make the Numbers Work for You
Our debt-to-income (DTI) ratio calculator helps you translate everyday bills into lending language. DTI is the quick screening metric lenders use to judge whether a proposed housing payment and your existing obligations look sustainable relative to your gross monthly income. Understanding both the front-end DTI (housing only) and back-end DTI (housing + all other debts) makes it easier to set a realistic price range, compare loan programs, and avoid last-minute surprises.
Front-end vs. back-end DTI—why both matter
Front-end DTI focuses on the house: PITI + HOA divided by gross income. Back-end DTI adds everything else that lenders count—minimum card payments, auto and student loans, alimony/child support. A file can pass one ratio while failing the other, so watching both is key. If you have low non-housing debts, your front-end may be the limiter; if you have a heavy car or student loan, the back-end usually bites first.
Common caps—and what they really mean
“28/36” and “31/43” you see online are not universal rules, but practical yardsticks. Some files are approved above those numbers (especially with strong credit, assets, or down payment). Others need to be below, depending on program overlays. Treat caps as planning targets—numbers that keep you within the fairway—not hard law.
Dialing in a target payment
Reverse the math: multiply your chosen cap by income, then subtract HOA and (for back-end) your other debts. That yields a maximum PITI you can aim for while staying within the cap. From there, a payment calculator can map PITI to purchase price ranges at current rates and taxes.
Strategic levers if you’re over cap
- Lower payment: consider cheaper homes, larger down payment, points, or different loan terms.
- Reduce other debts: paying down high-payment loans can improve back-end DTI quickly.
- Verify income: bonuses, overtime, or secondary income may count if documented per guidelines.
- HOA awareness: a high HOA can push front-end DTI over the line even when P&I looks fine.
DTI is just one lens. Lenders also weigh credit, assets, reserves, property type, LTV, and occupancy. Use DTI to set realistic expectations and craft a plan that keeps your monthly life comfortable after you close.