Debt-to-Income Calculator
How Do I Calculate My Debt-to-Income Calculator?
Formula:
DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
- Total Monthly Debt Payments: Includes rent or mortgage, car loans, student loans, credit card minimums, and other recurring debts.
- Gross Monthly Income: The amount you earn each month before taxes or deductions.
Example:
If you make $6,000 per month and pay $2,100 in total monthly debts:
DTI = ($2,100 ÷ $6,000) × 100 = 35%
That means 35% of your income goes toward debt each month. Lenders usually prefer a DTI of 43% or lower for most mortgage programs.
What Is Debt-to-Income Ratio (DTI)?
Your DTI ratio is one of the most important numbers lenders use to assess your ability to manage monthly payments and take on a mortgage.
It’s the percentage of your gross monthly income that goes toward paying debts.
• A lower DTI means more financial flexibility and higher loan approval chances.
• A higher DTI means you may need to reduce debt or increase income before qualifying for your ideal mortgage.
At Zarro Mortgage Group, we help buyers across the Treasure Coast understand and improve their DTI so they can qualify for better loan options and interest rates.
Why DTI Matters for Homebuyers
Your DTI directly impacts:
• How much home you can afford
• Your mortgage approval odds
• The type of loan programs available to you
For example:
• Conventional loans typically prefer a DTI under 55%+
• FHA loans may allow up to 50%, depending on credit
• VA loans often have flexible DTI standards
By using our calculator, Martin County and St. Lucie County buyers can identify whether they’re financially ready — or if a few small debt adjustments could boost their approval chances.
Frequently Asked Questions About Debt-to-Income Calculators ?
What does “debt-to-income ratio” mean when applying for a mortgage?
Your debt-to-income ratio (DTI) measures how much of your monthly income goes toward debts.
It helps lenders determine whether you can comfortably handle a new mortgage payment.
For Treasure Coast buyers, a DTI under 43% is ideal, though some loan programs may approve higher depending on your credit profile and down payment.
What debts are included in my DTI calculation?
Lenders include recurring monthly payments such as:
• Car loans or leases
• Student loans
• Credit card minimums
• Personal or installment loans
• Child support or alimony
They typically exclude utilities, groceries, or insurance premiums.
Our Zarro Mortgage Group DTI Calculator automatically factors only relevant debt types when estimating your ratio.
How does my DTI affect mortgage approval?
DTI is one of the top three factors (alongside credit score and down payment) that determine approval.
A lower DTI means lenders see you as a lower-risk borrower.
If your DTI is too high, Zarro Mortgage Group can help restructure debts, explore different loan types, or find programs like FHA or VA loans that allow higher ratios.
What is a good debt-to-income ratio to buy a house?
A good DTI is typically:
• 36% or below — Excellent
• 37–43% — Acceptable for most conventional loans
• 44–50% — May qualify with compensating factors (like high credit or large down payment)
Treasure Coast homebuyers aiming for top-tier approval should target below 43% whenever possible.
Can I still get approved if my DTI is high?
Yes — many programs, including FHA, VA, and USDA loans, allow higher DTIs if your credit score and income are strong.
At Zarro Mortgage Group, we help Martin and St. Lucie County buyers find mortgage options that match their full financial profile — not just one number.
How can I lower my DTI before applying for a mortgage?
You can lower your DTI by:
• Paying down revolving credit card balances
• Avoiding new loans or financing
• Consolidating debt at lower rates
• Increasing your income (even part-time work counts!)
Even a small DTI reduction can improve your loan terms significantly.
Where can I learn more about DTI and mortgage qualification?
The Federal Housing Administration (FHA) provides helpful information on acceptable DTI limits and qualification standards.
For personalized local guidance, Zarro Mortgage Group works with Treasure Coast buyers to evaluate their ratios and find the most flexible loan programs available.
Buy your next home with a local lender you can trust
Skip the big banks and online gimmicks. With Zarro Mortgage Group, you get real people, real answers, and real results — right here on the Treasure Coast.
We’ll help you get pre-qualified quickly, so you can shop for your dream home with confidence and clarity.