Income Qualification Calculator

How to use this calculator

1. Enter your gross monthly income (before taxes and deductions).
2. Enter your existing monthly debts: auto loans, student loans, personal loans, minimum credit card payments, and other installment debts.
3. Adjust the front-end and back-end DTI limits to match the guidelines you’re using (28/36 is a common starting point, but some programs use higher ratios).
4. Review the maximum housing payment from the front-end ratio, the max total debt from the back-end ratio, and the qualifying housing payment based on the tighter limit.
5. Look at the calculated front-end and back-end DTI percentages to see how they compare to your target guidelines.

Inputs explained

Gross monthly income

Your total monthly income before taxes and deductions. Include wages, salary, bonus income that lenders are likely to count, and other stable earnings if applicable.

Existing monthly debts

The sum of your recurring monthly debt payments such as auto loans, student loans, personal loans, and minimum required credit card payments. Do not include utilities, groceries, or discretionary spending here.

Front-end DTI limit (%)

The maximum percentage of gross income a lender wants going toward housing costs (PITI + HOA). Common guidelines start around 28%, but many programs allow more or less depending on risk.

Back-end DTI limit (%)

The maximum percentage of gross income a lender allows for all debts combined (housing + other monthly debts). A traditional benchmark is 36%, but many modern mortgage programs allow higher ratios in specific circumstances.

When to use it

• Gauging a rough maximum housing payment that might fit traditional DTI guidelines before talking to a lender.
• Testing how paying down other debts, such as auto or student loans, could increase your qualifying housing capacity under the back-end DTI limit.
• Explaining DTI concepts to homebuyers or borrowers using simple numbers instead of dense underwriting language.
• Comparing different DTI standards (for example, 28/36 vs 31/43) used by various lenders or loan programs to see how much they affect housing affordability.
• Checking whether your current rent or proposed mortgage payment would push your back-end DTI above commonly cited guidelines.
• Helping first-time buyers understand how student loans or car payments reduce the room left for a mortgage under standard DTI rules.

Tips & cautions

• If back-end DTI is the bottleneck, paying down or refinancing other debts can open up room for housing within the same income level.
• Always remember that this calculator is based on gross income; your take-home pay will be lower after taxes and benefits, so make sure the qualifying housing payment still fits your real budget.
• Include property taxes, homeowner’s insurance, mortgage insurance (if applicable), and HOA dues in your target housing payment—not just principal and interest.
• Some loan programs and lenders allow higher DTIs for strong borrowers (for example, high credit scores or sizable reserves) while others use stricter caps; adjust the percentages to match real program guidelines when possible.
• Use this tool alongside a detailed budget: even if a lender would approve a higher payment based on DTI, you may prefer a more conservative housing cost.
• If you’re early in your home search, you can pair this with a mortgage payment calculator to translate the qualifying housing payment into a rough home price range based on rates and down payment.
• Uses simplified DTI math and does not factor in reserves, credit scores, down payment size, employment history, or program-specific overlays, all of which influence real underwriting decisions.
• Does not verify income types or documentation requirements; actual qualifying income may differ from your gross income depending on stability, history, and documentation.
• Assumes a single combined bucket for “existing debts” and does not break out specific obligations that some lenders treat differently (such as deferred student loans or income-based repayment plans).
• Does not account for future changes in income, debt, or interest rates; it is a static snapshot based on today’s numbers.
• Not a commitment to lend or a substitute for a full prequalification or preapproval from a mortgage lender.

Worked examples

Deep dive

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