Corie Adams
Lending Team
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Affordability

Debt-to-Income Calculator

Debt-to-income is the ratio underwriters care about most. It compares your monthly obligations to your gross monthly income, and it's the reason two buyers with identical incomes get very different approvals.

The useful insight isn't the number itself, it's seeing which specific debt is costing you the most borrowing power.

Your numbers

$7,900
$2,200
$450
$220
$130
$0

Child support, personal loans, co-signed debt.

Your results

Back-end DTI

38%

Within typical conventional guidelines

Front-end (housing) DTI
27.8%
Total monthly debt
$3,000
Non-housing debt
$800
Room left at a 45% ceiling
$555Additional monthly payment you could absorb
DTI without the car payment
32.3%
DTI without credit cards
36.3%

What happens if you change this

Your back-end DTI is 38%, inside the guideline most conventional approvals use. Paying off the car payment alone would bring it to 32.3% and free up roughly $450 of monthly borrowing capacity, worth about $71,100 in additional purchase price at current rates. You currently have $555 of monthly room before hitting 45%.

Keep these numbers

Your results are yours already. If it helps, send them to yourself, or have Corie look at the same scenario and tell you what she would change.

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Questions people ask

What DTI do I need to qualify?
Many conventional approvals run to about 45%, with higher allowed for strong files. FHA is often more flexible. Your credit, reserves and down payment all influence the ceiling.
Do utilities and groceries count?
No. Only debts that appear on your credit report plus obligations like child support. Living expenses aren't included in DTI.

Estimates for education only, not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2297 · Equal Housing Opportunity.

In plain English

It measures the share of your monthly income already spoken for, which is the number underwriting cares about most.

When to use it

  • Before applying, to see whether a debt should be paid off first
  • When deciding between paying down a card or saving more down payment
  • If you were declined elsewhere and want to know why

Common mistakes

Using take-home pay
Lenders use gross income before taxes and deductions.
Including household expenses
Groceries, utilities and phone bills are not part of the calculation. Credit obligations are.
Paying off the wrong debt
Retiring a small balance with a large payment helps the ratio more than clearing a large balance with a small one.

Recommended next steps

  1. 01See the price range that ratio supports
  2. 02Talk With Corie

Turn the estimate into real numbers.

A pre-approval replaces the assumptions above with your actual income, credit, and the terms available to you today.

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Other numbers worth running.

After the math

Where this number leads.