Debt to income ratio calculator
The following debt to income ratio calculator will greatly assist
you in determining if you are qualified to get a mortgage or not.
The calculator will find two types of debt to income ratio. The first one is the front end ratio and the second one is the back end ratio
The front end ratio is your monthly housing payment divided by
monthly gross income
Monthly housing payment in this case is either your rent or your monthly mortgage if you own a house
Your monthly mortgage is also called P.I.T.I.
P.I.T.I. stands for principal, interest, taxes and insurance.
The back end ratio is your monthly housing payment + all other recurring
payments such as credit card payments, auto loans, student loans, and other payments you make monthly divided
by your monthly gross income
As a rule of thumb and depend on your lender, the front end ratio should not exceed 28% while the back end ratio should not exceed 36%
Guidelines to use the debt to income ratio calculator
When entering numbers, do not use a slash: "/" or "\"
After you have entered all values, hit calculate and both ratios will be displayed in the big box below: