Debt-To-Income Ratio Calculator
Use this calculator to calculate your debt-to-income ratio.
Your Debt-To-Income (DTI) ratio is important because it is a measure of risk used by mortgage lenders. Your debt-to-income ratio may be used to determine:
- the loan programs that you qualify for;
- the maximum mortgage amount you qualify for; and
- how much you can can afford to pay for a home.
Debt-To-Income Calculator - Help
- Car Loan
- The total monthly payments for any car loan(s) or lease(s) that you are obliged to pay.
- Credit Card
- The total of the minimum monthly payments you are required to make on your credit cards. You should not include credit card balances that you pay off in full every month.
- Debt-To-Income Ratio
- Your debt-to-income ratio may be used to determine: the loan programs that you qualify for; the maximum mortgage amount you qualify for; and how much you can can afford to pay for a home. It is an important measure of risk used by mortgage lenders. One common type of debt-to-income ratio excludes your mortgage payment from calculation. Another includes your prospective mortgage payment along with all other required debt payments. The ratio used by the affordability calculator includes recurring payments on your debt and your housing payment, including principal, interest, taxes, hazard insurance, mortgage insurance and homeowners association dues. It is generally limited to 36% for conventional loans and 43% for FHA loans. These guidelines are subject to change. Also, some lenders may consider compensating factors in allowing higher debt-to-income ratios.
- Income
- Your gross income before taxes and deductions. It may include wages, salary, alimony, child support, retirement and certain other income. Lenders may make adjustments to determine the amount of stable and continuous income that will be available to you and your spouse for loan qualifying purposes.
- Maximum Mortgage Payment
- The maximum mortgage payment includes principal, interest, taxes, and insurance. It is based on the limit of a 36% debt-to-income ratio for conventional loans. While you may be able to find a lender that will approve you for a higher amount, you would be significantly increasing your risk.
- Other Debt
- Other debt payments include alimony and child support payments, all rent or mortgage payments except those that will be replaced by your new mortgage, and required periodic payments on other loan obligations. It may not include debts that will be paid off in a relatively small number of months
- Remaining Income
- This is the money remaining after your debt and housing payments. The remaining income is the money you have available to pay taxes and other expenses and to contribute to savings.
- Student Loan
- Your total required monthly student loan payments