Debt to Income Calculator
Assess your borrowing power. Compare your monthly debt to your gross income. Determine your mortgage eligibility with precision.
How This Calculator Works
Our mortgage paymant is designed to provide you with accurate and quick estimates, helping you make informed financial decisions. Here’s how it works:Input Your Details:
Enter the required information, such as loan amount, interest rate, and loan term, into the calculator fields
Instant Calculation:
The calculator processes your data in real-time, using advanced algorithms to provide precise results.
View Your Results:
Instantly see your estimated monthly payments, total interest, and repayment schedule.
Adjust and Compare:
Modify the inputs to explore different scenarios and find the loan option that works best for you.
Got Questions?
What is a Debt-to-Income (DTI) ratio?
Your DTI ratio is a personal financial measure that compares your total monthly debt payments to your gross monthly income. Lenders use this percentage to determine your ability to manage monthly payments and repay borrowed money.
What is a good DTI ratio for mortgage approval?
Generally, a DTI ratio of 43% or lower is the standard requirement for a qualified mortgage. However, many lenders prefer a ratio below 36%, with no more than 28% of that debt going toward your mortgage payment.
What is the difference between front-end and back-end DTI?
The front-end ratio only calculates your proposed housing expenses (mortgage, taxes, insurance). The back-end ratio includes your housing expenses plus all other recurring monthly debts. Lenders focus primarily on the back-end ratio.
Which debts should I include in the DTI calculator?
You should include recurring monthly obligations such as auto loans, student loans, credit card minimum payments, personal loans, child support, and alimony. Do not include monthly living expenses like utilities, groceries, or health insurance.
Can I get a mortgage with a high DTI ratio?
Yes, some loan programs like FHA or VA loans may allow for a higher DTI ratio, sometimes up to 50% or more, depending on your credit score and “compensating factors” like significant cash reserves or a large down payment.
