Calculator
Example Data Table
| Field | Example Value |
|---|---|
| Gross Monthly Income | $7,800.00 |
| Housing Expense | $2,300.00 |
| Other Recurring Debts | $895.00 |
| Total Monthly Obligations | $3,195.00 |
| Front-End Ratio | 29.49% |
| Back-End Ratio | 40.96% |
| Front Gap | $118.00 |
| Back Gap | $159.00 |
Formula Used
Housing Expense = Principal and Interest + Property Tax + Home Insurance + Mortgage Insurance + HOA Dues
Front-End Ratio = (Housing Expense ÷ Gross Monthly Income) × 100
Other Recurring Debts = Auto Loans + Credit Cards + Student Loans + Personal Loans + Alimony or Child Support + Other Debts
Back-End Ratio = ((Housing Expense + Other Recurring Debts) ÷ Gross Monthly Income) × 100
Front Gap = Custom Front Target Payment − Housing Expense
Back Gap = Custom Back Target Payment − Total Monthly Obligations
How to Use This Calculator
- Enter gross monthly income before taxes and deductions.
- Enter proposed housing expenses, including mortgage-related monthly charges.
- Add recurring monthly debts that appear on credit obligations.
- Set the front-end and back-end targets you want to test.
- Click the calculate button to show the result above the form.
- Review the ratios, gaps, remaining income, CSV file, PDF file, and graph.
This tool helps compare scenarios quickly. It does not replace lender review, underwriting findings, or verified documentation.
About FHA Debt-to-Income Review
The front-end ratio measures the share of gross income used for housing expense. The back-end ratio measures the share used for housing plus recurring monthly debt. Looking at both numbers together helps borrowers test affordability before applying.
This version includes detailed housing inputs, separate debt categories, editable targets, export tools, and a visual chart. That setup makes it easier to compare different payment structures, debt payoff plans, or income assumptions before discussing the file with a lender.
The front gap and back gap show how much room remains under the selected targets. Positive values suggest available capacity under your chosen benchmark. Negative values show the amount that must be reduced through lower payments, more income, or fewer recurring debts.
Because lender decisions depend on credit, reserves, property details, automated findings, compensating factors, and documentation quality, ratio results should be treated as planning guidance. Use them to organize numbers, improve debt structure, and prepare for a better conversation with a loan professional.
FAQs
1. What does this calculator measure?
It measures front-end and back-end debt-to-income ratios using monthly housing costs, recurring debts, and gross monthly income.
2. Why are there two ratios?
The front-end ratio focuses on housing expense only. The back-end ratio includes housing plus other recurring monthly debt obligations.
3. What income should I enter?
Enter gross monthly income before taxes. Use stable income that can be documented and verified during the mortgage process.
4. Should I include utilities?
Utilities are usually not included in these ratio formulas. Focus on housing payments, insurance, taxes, dues, and recurring debts.
5. Why use custom targets?
Custom targets let you test different lender overlays, underwriting approaches, or personal affordability goals without changing the calculation method.
6. What does a negative gap mean?
A negative gap means your housing expense or total obligations exceed the target payment level you selected.
7. Can I export the results?
Yes. The results section includes a CSV export and a PDF export for records, sharing, or scenario comparison.
8. Is this an approval tool?
No. It is a planning tool. Final approval depends on underwriting, credit profile, documentation, property review, and lender requirements.