Estimate your DTI
Enter your gross monthly income, expected monthly housing payment, and other monthly debt payments. This quick estimate is for learning—not a qualification decision.
With these example numbers, your estimated total DTI is 35.0%.
This estimate uses the numbers you enter and does not determine whether you qualify. Lenders may calculate income and debts differently based on loan-program rules and your full application.
How to calculate DTI
Total DTI = (monthly housing payment + other monthly debt payments) ÷ gross monthly income × 100. Use monthly amounts for both sides of the calculation. Gross income means income before taxes and other payroll deductions—not the amount deposited in your bank account.
For example, if gross income is $8,000 a month, the estimated housing payment is $2,100, and other monthly debts are $700, total monthly obligations are $2,800. Dividing $2,800 by $8,000 gives an estimated total DTI of 35%.
What may count as debt?
A lender typically reviews recurring obligations shown on your credit report and those you disclose. Depending on the loan program and your situation, these may include:
- Auto, personal, and other installment-loan payments
- Credit-card minimum payments
- Student-loan payments, which may be calculated under program-specific rules
- Other required obligations, such as alimony or child support
Everyday costs such as groceries, utilities, phone bills, and subscriptions are important to your personal budget, but they are generally not counted as monthly debts in the standard DTI formula. A lender may still review your broader financial picture.
What counts as the housing payment?
For a home you are buying, the estimated monthly housing cost usually includes principal and interest, property taxes, homeowners insurance, and any required mortgage insurance or HOA dues. Other property-related costs may apply. A payment estimate that leaves these out can make DTI look lower than it may be in a lender’s review.
Is there a DTI limit to qualify?
There is no single DTI percentage that guarantees approval across all mortgages. Acceptable ratios vary by loan program, lender, and application. A lender may also consider factors such as credit history, assets, down payment, loan type, and the strength and documentation of income. A lower DTI can give you more room in your monthly budget, but it does not by itself guarantee approval.
How can I lower my DTI?
- Pay down or pay off eligible monthly debts, if it makes sense for your finances.
- Consider a lower home price or a housing payment that better fits your budget.
- Review whether all qualifying income has been documented accurately.
- Avoid taking on new monthly debt while preparing for a mortgage application.
Before changing your finances or making a large purchase, ask a licensed loan officer how it could affect your specific application.
Talk through your options
A licensed loan officer can review your full situation and explain which factors may matter for different loan programs. An estimate is a starting point, not a promise of approval.