Calculate the DTI ratio lenders use to decide whether to approve you.
Lenders calculate two DTI ratios. The front-end ratio compares your housing costs alone to your income — an overextended housing payment signals affordability risk. The back-end ratio adds all monthly debt obligations: it's the number underwriters rely on most. Conventional loans typically require both ratios under 28/36; FHA allows 31/43 with compensating factors. Both ratios use gross (pre-tax) income, not take-home pay.
Front-end DTI
Front-end DTI = Housing payment / Gross monthly income × 100
Back-end DTI
Back-end DTI = (Housing + all other debts) / Gross monthly income × 100
Back-end DTI is the primary decision metric for most lenders. Front-end is a secondary check. Being within guideline on both ratios gives the strongest loan approval path; exceeding the back-end limit is the most common reason a mortgage application is denied.
Always gross (before-tax) income. This is a lender convention, not financial advice — the actual budget impact on your household is better assessed using take-home pay. The Calculator intentionally uses gross because that's what mortgage underwriters use.
Any recurring monthly obligation that appears on your credit report: mortgages, car loans, student loans, credit card minimums, child support, alimony, personal loans. It does not include utilities, groceries, phone bills or subscriptions, which lenders do not count.
Sometimes. Lenders may approve borrowers up to 45–50% back-end DTI with excellent credit (760+), significant cash reserves or a large down payment as compensating factors. FHA explicitly allows up to 57% DTI in some cases with strong compensating factors. VA loans are evaluated holistically.