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Debt-to-Income Ratio Calculator To Buy A House

Last Updated: Jun 21, 2025

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Created by
Saqib Hanif
Saqib Hanif

Saqib Hanif is the CEO and founder of Calculator Value. He builds calculators and educational content across sports, math, and science, and supports a limited set of construction-related calculators. Read full profile

The Debt to Income Ratio Calculator for House Purchases helps determine if a house purchase is affordable based on your income and existing debts.

Key Formulas

  • Front-End DTI Ratio = (Monthly Housing Expenses ÷ Monthly Income) × 100
  • Back-End DTI Ratio = (Total Monthly Debt ÷ Monthly Income) × 100
  • Monthly Mortgage Payment = P × (r × (1 + r)^n) ÷ ((1 + r)^n - 1)

Affordability Guidelines

  • Front-End DTI (housing expenses) should be below 28% of income
  • Back-End DTI (total debt) should be below 36% of income
  • For FHA loans, limits are higher: 31% front-end and 43% back-end
  • Down payment of 20% or more helps avoid Private Mortgage Insurance (PMI)

Risk Levels

  • Low Risk: Back-End DTI below 28.8% (80% of max)
  • Moderate Risk: Back-End DTI between 28.8-36%
  • High Risk: Back-End DTI between 36-39.6% (110% of max)
  • Very High Risk: Back-End DTI above 39.6%

Example

  • Inputs:
  • Gross Monthly Income: 5,000 dollars
  • House Price: 300,000 dollars
  • Down Payment: 60,000 dollars (20%)
  • Interest Rate: 4.5%
  • Loan Term: 30 years
  • Property Taxes: 250 dollars per month
  • Home Insurance: 100 dollars per month
  • Other Debt: 500 dollars per month
  • Key Results:
  • Monthly Mortgage Payment: 1,216 dollars
  • Front-End DTI: 31.3%
  • Back-End DTI: 41.3%
  • Risk Assessment: High Risk

This calculator helps you determine if a house purchase fits your budget before making an offer.

  • Industry-Standard Formulas: The formulas and methods used in this calculator follow widely accepted standards in Financial.
  • Careful Verification: The calculator is tested to ensure it behaves correctly across a range of inputs.
  • Continuous Updates: The calculator is updated as needed to reflect better accuracy and usability.

Related Calculators

Debt to Equity→Debt-to-Income Ratio Calculator to Buy a Car→Debt-to-Income Ratio Calculator for Apartment→Credit Card Balance Transfer→

Buying a house can be an exciting and life-changing step, but it can also put a significant strain on your gross income, savings, and overall financial health. If you’re unsure whether you can afford a house, our Debt-to-Income Ratio Calculator can give you clear insights—including whether it's affordable, your DTI ratios, a comparison of your financial profile to standard benchmarks, and a complete snapshot of your financial situation.

What Is a Debt-to-Income Ratio?

A Debt-to-Income (DTI) ratio is a measurement that shows what percentage of your monthly gross income goes toward debt payments, represented as a percentage.

DTI Formula:

DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100

For instance, if your gross monthly income is 7000 dollars, and your total monthly debt payments are 1500 dollars:

Your DTI ratio is:

DTI ratio = (1500 / 7000) x 100 = 21%

Salary person calculating DTI to buy a house

What Is the DTI Calculator for Buying a House?

The DTI calculator for buying a house is a powerful tool designed to help you determine whether your financial situation allows you to buy a specific house—based on your income, existing debts, and expected one-time and monthly housing expenses.

The calculator provides you with results such as:

  • Front-End DTI (%): The percentage of your gross monthly income that goes toward housing expenses only—for example mortgage, property taxes, insurance.
  • Back-End DTI (%): The percentage of your gross monthly income that goes toward all monthly debts—for example housing, credit cards, auto loans, student loans.

It also gives you:

  • Monthly mortgage payments
  • Total housing costs
  • Remaining monthly income
  • Risk level of your DTI
  • Recommendation on affordability

How to Use the DTI Calculator for Buying a House — Real-World Example

The calculator is simple and easy to use. No field requires specialized financial knowledge, and anyone can fill it out and understand the results. Here is an example:

  • Step 1: Fill in the fields
  1. Gross Income Amount: 6,000 dollars (monthly)
  2. House Price: 250,000 dollars
  3. Down Payment: 50,000 dollars
  4. Interest Rate: 4.5%
  5. Loan Term: 30 years
  6. Property Taxes: 200 dollars per month
  7. Home Insurance: 100 dollars per month
  8. HOA Fees: 0 per month
  9. Other Debt Payments: 500 dollars per month
  10. Front-End DTI Limit: 28%
  11. Back-End DTI Limit: 36%
  • Step 2: Review Result
    • Monthly Mortgage Payment: 1,013 dollars
    • Total Housing Expenses: 1,313 dollars
    • Front-End DTI: 21.89%
    • Back-End DTI: 30.22%
    • Remaining Monthly Income After Debts: 4,186 dollars
    • Down Payment: 20%, which is good (No PMI Required)
    • House Price vs Max Affordable (340,448 dollars): Affordable
    • DTI Risk Level: Moderate Risk — But within recommended limits

ℹ️ Front-End vs. Back-End DTI:

TypeIncludesRecommended Max
Front-End DTIMortgage, Taxes, Insurance, HOA28%
Back-End DTIFront-End + Credit cards, student/car/personal loans, etc.36%