Debt-to-Income Ratio Calculator
Find out where you sit against the ratios lenders underwrite, before an application puts it on record.
What This Calculator Does
Divides your housing payment and your total monthly obligations by gross monthly income to produce the front-end and back-end ratios lenders use, measures both against the traditional 28/36 benchmark, and shows how much additional room the stretch bands some programs allow — generally in the 43-50% range — would give you.
Who Is This For
Buyers preparing for pre-approval, borrowers carrying student loans or car payments who want to see the effect, and anyone in Miami whose housing costs include association dues and Florida insurance premiums that push the ratio higher than expected.
How It Works
Enter your gross monthly income, the housing payment you are targeting including taxes, insurance and association dues, and your other recurring monthly debt payments. The calculator returns both ratios and where they land against typical program limits.
Frequently Asked Questions
What is the 28/36 rule?
The traditional benchmark: housing costs no more than 28% of gross monthly income, and all debt payments combined no more than 36%. It is conservative by current standards, and it remains the cleanest test of whether a payment is genuinely comfortable rather than merely approvable.
How high will lenders actually go?
Higher than 36%. Depending on the program and your compensating factors — reserves, credit profile, down payment — approvals commonly stretch into the 43-50% range. Where you land inside that band is a lender and program question, not a universal rule you can look up.
What counts as debt?
Recurring obligations that show up in your credit file: mortgage or rent, car payments, student loans, minimum credit card payments, personal loans, child support and alimony. Utilities, groceries, and general living costs are not counted, which is why an approvable ratio and an affordable one are not the same thing.
What counts as income?
Gross income before taxes, documented and stable. Salary, self-employment income averaged over time, and a reliable bonus or commission history typically qualify. Income you cannot document the way the lender requires does not help the ratio, however real it is.
Why is my ratio worse in Miami than I expected?
Because the housing side includes property taxes, homeowners insurance, and condo or HOA dues — and in South Florida the last two carry unusual weight. Two identical incomes buying identically priced homes can land in different bands purely on insurance and association costs.
How do I improve it quickly?
Pay down the smallest recurring payments rather than the largest balances, because the ratio counts monthly obligations and not total debt. Clearing one car payment moves the number more than shaving a large balance does. And avoid opening new accounts while you are in process.