Debt-to-Income Ratio Calculator
See where you stand against the ratios lenders typically underwrite.
What This Calculator Does
Divides a housing payment and total monthly obligations by gross monthly income to produce front-end and back-end ratios, then compares them against commonly used lending guidelines.
Who Is This For
Buyers preparing for pre-approval, borrowers with existing debt who want to see the effect on qualification, and anyone whose housing costs include association dues or higher insurance premiums.
How It Works
Enter gross annual income, a target housing payment including taxes and insurance, and other recurring monthly debts to see both ratios and how they compare to typical program limits.
Frequently Asked Questions
What is the traditional 28/36 guideline?
A commonly cited benchmark suggests housing costs at or below roughly 28% of gross monthly income, with total debt payments at or below roughly 36%, though actual lending guidelines vary by program.
How high will lenders actually allow the ratio to go?
Approvable ratios often extend well above 36% depending on the program and compensating factors such as reserves or credit profile; ask a lender for the specific limits on the program you are considering.
What counts as debt in this calculation?
Recurring obligations such as auto payments, student loans, minimum credit card payments, and support obligations typically count in the monthly debt field, while utilities and general living expenses generally do not; the proposed housing payment is entered separately and is already included in the back-end ratio.
How can I improve my ratio quickly?
Paying down smaller recurring monthly obligations, rather than the largest balances, can move the ratio more directly, since the calculation counts monthly payments rather than total debt owed.