Debt-to-Income Calculator

Most conventional lenders prefer a DTI at or below 43%, though FHA loans allow up to 50% with compensating factors like strong reserves or a high credit score. Say you earn $7,500 gross monthly. A 43% DTI caps your total debt payments at $3,225. If you already pay $450 on a car and $150 on student loans, that leaves $2,625 for a mortgage payment. At 6.5% over 30 years, a $2,625 payment supports roughly a $415,000 loan. Lenders also run a front-end ratio — housing costs alone should stay under 28% of gross income, or $2,100 in this example. If your DTI comes out at 47%, paying off a $300 monthly car note drops it to 43% and can flip a denial into an approval. To see how a specific loan amount affects your payment and ratio, run the numbers through the mortgage calculator and compare against your gross monthly income.

On a $320,000 loan at 6.5% for 30 years, the monthly payment is $2,022.62 and total interest is $408,143, bringing the total to $728,143. The same $320,000 at 5.75% for 15 years — 15-year loans typically price about 0.75% lower — costs $2,657.04 monthly with $158,267 in interest, totaling $478,267. You pay $634 more each month but save $249,876 in interest and own the home 15 years sooner. The break-even question is what else you'd do with that $634 monthly. If you invest it at 7% annually for 15 years, it grows to roughly $200,000 — still short of the $249,876 in interest saved. The 15-year wins on pure math for most borrowers who can comfortably afford the higher payment. Test your own numbers with the mortgage calculator and compare both terms side by side.

A $70,000 salary is $5,833 gross monthly. At a 36% DTI — a comfortable target — your total debt payments should stay at or below $2,100. If you carry a $400 car payment and $100 in minimum card payments, $1,600 remains for housing. At 6.5% over 30 years, a $1,600 principal-and-interest payment supports a loan near $253,000. Add property taxes and insurance of roughly $400 monthly, and your all-in housing cost is $2,000, keeping you at 34% DTI. Lenders will approve you up to 43% to 50% DTI, which on this salary means $2,508 to $2,917 in total monthly debt — but maxing out that ceiling leaves little margin for repairs, medical bills, or a job change. A common rule of thumb is keeping housing under 28% of gross income, or $1,633 here. Run your target payment through the mortgage calculator to see exactly what loan amount it buys at today's rates.

No — this calculator returns principal and interest only, the core amortization figures. On a $320,000 mortgage at 6.5% for 30 years, the calculator shows $2,022.62 monthly. Real-world costs add property taxes (often 1% to 2% of home value annually, or $267 to $533 monthly on a $320,000 home), homeowners insurance ($100 to $200 monthly), and private mortgage insurance if you put down less than 20% (0.5% to 1.5% of the loan annually, roughly $133 to $400 monthly). Those extras can push the true payment to $2,500 or more. PMI drops off automatically once you reach 20% equity, which on this loan takes about 8 to 9 years of standard payments. For a full housing-cost picture including taxes and insurance, use the mortgage calculator, which lets you layer those expenses onto the principal-and-interest figure.

Rate changes compound over long terms. On a $320,000 30-year mortgage, 6.0% produces a $1,918.56 monthly payment and $370,682 in total interest. At 6.5%, the payment rises to $2,022.62 and interest jumps to $408,143 — $37,461 more. At 7.0%, it's $2,129.21 monthly and $446,515 in interest, another $38,372 above the 6.5% figure. Every half-point on a $320,000 30-year loan costs roughly $37,000 to $38,000 in total interest. On shorter loans the effect shrinks: a $25,000 5-year auto loan at 6% costs $3,999 in interest, while 8% costs $5,415 — a $1,416 difference. The takeaway: shopping rates matters most on large, long-term loans. A single half-point reduction on a mortgage saves more than most people's annual discretionary spending. Use the loan calculator to model different rates against your specific amount and term.

Yes, if your loan has no prepayment penalty — most US mortgages don't. On a $320,000 mortgage at 6.5% for 30 years, the standard payment is $2,022.62. Adding $200 monthly cuts the payoff to about 25 years and saves roughly $100,000 in interest. Adding $500 monthly pays it off in about 21 years and saves over $180,000. The math works because every extra dollar goes straight to principal, skipping all future interest on that amount. Early in the loan, the impact is largest: your first payment sends $1,733.33 to interest and only $289.29 to principal, so extra payments in years 1 through 5 do the most damage to the interest total. Before prepaying, compare the rate against other debts — clearing a 22% credit card beats prepaying a 6.5% mortgage every time. Once high-rate debt is gone, extra principal payments on the mortgage are a guaranteed 6.5% return. Model your own extra-payment scenario with the loan calculator.