DTI Calculator

Will a Lender Approve Me?

Banks use something called a “debt-to-income ratio” (DTI) to decide if you can handle a mortgage. It’s simple: they add up all your monthly debt payments and divide by your monthly income. If the result is too high, they say no.

What you’ll need: Your monthly income (before taxes), the housing payment you’re targeting, and your other monthly debts (car payment, student loans, credit card minimums).

What you’ll get: Two ratios — your “housing ratio” (just housing costs vs income) and your “total debt ratio” (all debts vs income). Both are color-coded: green means you’d likely be approved, yellow means it’s tight, red means you need to reduce debt first.

The magic numbers: Most banks want housing costs under 28% of your income, and total debts under 36%. Some programs allow up to 43%.

Pre-tax, all sources

P&I + tax + insurance + PMI + HOA

Car, student loans, credit cards — not housing

Front-End DTI

28.0%

Housing only · Target: ≤28%

Housing ÷ income · target ≤ 28% (Fannie Mae Selling Guide)

Back-End DTI

35.1%

All debts · Target: ≤36%

All debts ÷ income · target ≤ 36% conventional, ≤ 43% FHA (HUD 4000.1)

ACCEPTABLE

You meet FHA guidelines and many conventional lenders. Some may require compensating factors like high credit or large reserves.

Based on Fannie Mae and HUD conventional/FHA lending guidelines

Your front-end DTI (28.0%) exceeds the 28% guideline. Consider targeting a lower housing payment — reduce by $0/mo to meet the threshold.

How Your Income Breaks Down

Housing Payment$1,960 (28.0%)
Other Debts$500 (7.1%)
Total Debt Obligations$2,460 (35.1%)
Remaining Income$4,540

Debt Payoff Optimizer

Enter your individual debts to see which payoff moves your DTI the fastest. Ranked by impact per dollar paid off.

Payoff Priority (highest impact first)

1st — Car Loan$18,000

Paying off removes $350/mo from your DTI, moving back-end from 35.1% to 30.1% · 52 months at current payment

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YOUR NEXT STEP
Find the right loan

You pass the bank's test — now see which loan types you qualify for.

Find the right loan

DTI guidelines vary by lender and loan program. FHA allows up to 43% (sometimes 50% with compensating factors). This calculator uses standard conventional thresholds as a baseline.

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