Debt-to-Income Ratio Calculator Calculate front-end and back-end DTI, qualify for mortgages, and plan debt reduction — wi...
Debt-to-Income Ratio Calculator
Calculate front-end and back-end DTI, qualify for mortgages, and plan debt reduction — with 2025 lender standards and stress testing.
Front-End DTI** = Housing Payment ÷ Gross Monthly Income
Back-End DTI** = (Housing + All Other Debt) ÷ Gross Monthly Income
Example** ($85K income = $7,083/mo gross): • Housing: $1,983 • Other debt: $500 • Front-end = $1,983 / $7,083 = **28.0%** • Back-end = ($1,983 + $500) / $7,083 = **35.1%**
✅ Lender Thresholds (2025)**:
- Conventional**: ≤28% front, ≤36% back → best rates
- FHA/Fannie**: ≤31% front, ≤43–50% back → reserves or strong credit required
- VA**: Residual income focus (not strict DTI)
⚠️ Avoid these dangerous situations:
- IBR payments underestimated** — FHA requires 1% of student loan balance if in income-driven plan
- Hidden debt** — medical bills, BNPL (Affirm, Klarna), rent-to-own
- “Stated income” loans** — banned for mortgages, but still in personal/auto lending
- DTI > 50% without reserves** — high denial risk or 1.5%+ rate premium
✅ Pro Tips**:
- Use **actual IBR payment** (not 1%) if it’s higher and documented
- Pay down credit cards to ≤30% utilization → may boost credit *and* DTI
- Delay large purchases until *after* mortgage closes
| Income | Debt | Back-End DTI | Lender Eligibility |
|---|---|---|---|
| $60K | $0 | 28% | All (20% down) |
| $85K | $500 | 35.1% | Conventional (best rates) |
| $60K | $1,200 | 42.0% | FHA only (reserves req’d) |
| $50K | $1,500 | 51.0% | Denied (or subprime w/ 25% APR) |
📉 DTI Improvement Plan**:
- $300/mo extra on $10K credit card @ 20% → **17 mo**, DTI ↓ 4.2%
- Refinance student loans @ 6% → $250/mo ↓ → DTI ↓ 3.5%
- Side gig: +$400/mo → DTI ↓ 5.6%
➡️ Standard DTI
“$7K income, $1,800 rent, $500 debt → what’s my DTI?” — for mortgage pre-qual.
➡️ Mortgage Qualifier
“With $85K income and $500 debt, how much home can I buy at 28/36?”
➡️ Debt Paydown Planner
“I’m at 45% DTI — how long to reach 36% with $200 extra/mo?”
Note: Uses 2025 Fannie Mae, FHA, and conventional DTI standards. Housing = PITI (principal, interest, tax, insurance).