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DTI Scenario Planner

What if you paid off this debt?

Lenders judge how much you can borrow by your debt-to-income ratio. Enter your income and each of your debts to see what a lender would count, the home price that leaves room for, and what paying a debt off first would change.

  1. Lenders compare debt to income

    Your (DTI) is your monthly debt payments, including the new home, divided by your monthly income before taxes. Lenders set a maximum, often between 36% and 50%.

  2. Some debts count differently than you pay

    Lenders follow set rules for each kind of debt. A paused student loan still counts as a payment; a car loan almost paid off may not count at all. We show the for each one.

  3. What’s left is your housing budget

    Your limit minus your counted debts is the most your housing payment () can be. We work backward from that payment to a home price.
Enter the minimum payment your credit report shows for each debt; the defaults are examples you can change or remove. Then press Pay off on a debt to test the effect. How lenders calculate DTI explains the rules in detail.
Your income and loan

Pre-tax income for everyone on the loan, and the loan you have in mind.

$
$
%
yr
Ongoing home costs

Lenders count these as part of your housing payment. A home's listing usually shows its property tax and HOA dues.

% / yr
$/ yr
$/ mo
Total debt limit (back-end DTI)

Max home price

$460,532

With $905 a month in debt payments (as lenders count them) and a 43% total debt limit.

Debt-to-income now

9.0%

$905/mo of debt, before the home

Max housing payment

$3,395

keeps total debt under 43%

Max home price

$460,532

$60,000 down

Monthly income

$10,000

$120,000/yr before tax

What this means

At a 43% limit, lenders allow up to $4,300 a month for all your debt payments combined, out of $10,000 in monthly income before tax. Your existing debts count for $905, leaving $3,395 for your housing payment, including property tax, insurance, and any mortgage insurance. With $60,000 down at 6.5%, that payment supports a home of about $460,532.

A lender will also look at your credit, savings, and job history. Paying off a debt takes cash, so keep enough for your down payment and closing costs.

What would raise your max price

Pay off: student loan (deferment / forbearance)frees $450/mo; $45,000 balance+$56,635
Pay off: auto loanfrees $380/mo; $18,000 balance+$47,825
Pay off: credit cardfrees $75/mo; $4,500 balance+$9,439

Your debts (3)

One row per debt on your credit report, plus child support or alimony you pay. Leave out rent, utilities, and phone bills. Press Pay off to see what clearing a debt before you apply would do. Debts are kept only while this page is open.
$
$

: $75/mo. Reported minimum payment used

$
$

Lender counts: $380/mo. Standard installment payment

$
$

Lender counts: $450/mo. Fannie Mae rule: 1% of balance (1.0% × $45,000 = $450) used because actual deferred payment is lower

Special rules for certain debts (DTI edge cases)

For student loans in , Fannie Mae uses 1% of the balance (or a documented fully amortizing payment); Freddie Mac and FHA use 0.5% of the balance instead of the actual $0. This hits borrowers fresh out of school harder than any other DTI rule.

For student loans on , a documented payment above $0 counts as is. If it’s a documented $0, Fannie accepts $0; Freddie Mac uses 0.5% of balance. SAVE has ended, and the new Repayment Assistance Plan (RAP, open since July 1, 2026) has a $10/month minimum, so a $0 payment is now possible only on the older IDR plans (such as IBR).

Lenders exclude installment debt with 10 or fewer payments left if the payment doesn’t materially affect your ability to repay the mortgage. Enter the months left on the debt and it’ll be excluded automatically. Auto leases are the exception: the lease payment always counts, however few months are left, because a lease is usually renewed or replaced.

Co-signed debt counts against your DTI unless you can document 12+ months of payments by the other party (cancelled checks, bank statements). Toggle that on the debt to see the effect.

For credit cards, only the minimum payment counts, even if you pay in full each month. Paying balances down before you apply helps twice: a lower balance usually means a lower minimum payment (better DTI) and lower utilization (better credit score).

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

Something look off? Report it

Terms used on this page

Lenders follow set rules for counting debt. These are the terms those rules use.

DTI (debt-to-income ratio)
The share of your gross monthly income that goes to debt payments. It’s the main number lenders use to decide how much you can borrow. More
Back-end DTI (total debt limit)
All monthly debt payments, including the new housing payment, divided by gross monthly income. Common limits run from 36% (conservative) to about 50%. More
Gross income
Your pay before taxes and deductions. Lenders measure debts against this number, not your take-home pay.
Qualifying payment
The monthly amount a lender counts for a debt. It can differ from what you pay, such as 1% of the balance for a paused student loan.
PITI
Principal, interest, taxes, and insurance: your full monthly housing payment. HOA dues and mortgage insurance are added when they apply. More
Deferment and forbearance
Temporary pauses on student loan payments. Lenders still count a payment for these loans, because the pause will end.
Income-driven repayment (IBR/IDR)
Federal student loan plans that set your payment from your income. A documented payment, even a low one, is usually what lenders count.
Co-signed loan
A loan you signed for someone else. It counts against your DTI unless you can show the other person has made the payments for 12 months or more.
Qualified mortgage (QM)
A category of loan with federal safety standards. Under the original rule it capped DTI at 43%, a limit many lenders still use as a benchmark.

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