Debt-to-Income (DTI) Ratio Calculator
.dti-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 20px;
border: 1px solid #e0e0e0;
border-radius: 8px;
background-color: #f9f9f9;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.dti-header {
text-align: center;
margin-bottom: 30px;
}
.dti-header h2 {
color: #2c3e50;
margin-bottom: 10px;
}
.dti-input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.dti-input-grid {
grid-template-columns: 1fr;
}
}
.dti-input-group {
margin-bottom: 15px;
}
.dti-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #555;
}
.dti-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensures padding doesn't affect width */
}
.dti-btn {
display: block;
width: 100%;
padding: 15px;
background-color: #0073aa;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
margin-top: 20px;
transition: background-color 0.3s;
}
.dti-btn:hover {
background-color: #005177;
}
.dti-result-box {
margin-top: 30px;
padding: 20px;
background-color: #fff;
border: 1px solid #ddd;
border-radius: 4px;
display: none; /* Hidden by default */
text-align: center;
}
.dti-percentage {
font-size: 48px;
font-weight: bold;
color: #2c3e50;
margin: 10px 0;
}
.dti-status {
font-size: 20px;
font-weight: 600;
margin-bottom: 10px;
padding: 5px 15px;
border-radius: 20px;
display: inline-block;
}
.status-good { background-color: #d4edda; color: #155724; }
.status-warning { background-color: #fff3cd; color: #856404; }
.status-bad { background-color: #f8d7da; color: #721c24; }
.dti-article {
max-width: 800px;
margin: 40px auto;
font-family: Georgia, serif;
line-height: 1.6;
color: #333;
}
.dti-article h2 {
font-family: -apple-system, sans-serif;
color: #2c3e50;
margin-top: 30px;
}
.dti-article p {
margin-bottom: 15px;
}
.dti-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.dti-article li {
margin-bottom: 10px;
}
function calculateDTI() {
// 1. Retrieve Input Values
var grossIncome = parseFloat(document.getElementById('grossIncome').value);
var rentMortgage = parseFloat(document.getElementById('rentMortgage').value);
var carLoans = parseFloat(document.getElementById('carLoans').value);
var creditCards = parseFloat(document.getElementById('creditCards').value);
var studentLoans = parseFloat(document.getElementById('studentLoans').value);
var otherDebt = parseFloat(document.getElementById('otherDebt').value);
// 2. Input Validation (handle NaN or empty inputs)
if (isNaN(grossIncome) || grossIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// Treat empty debt fields as 0
if (isNaN(rentMortgage)) rentMortgage = 0;
if (isNaN(carLoans)) carLoans = 0;
if (isNaN(creditCards)) creditCards = 0;
if (isNaN(studentLoans)) studentLoans = 0;
if (isNaN(otherDebt)) otherDebt = 0;
// 3. Perform Calculations
var totalMonthlyDebt = rentMortgage + carLoans + creditCards + studentLoans + otherDebt;
var dtiRatio = (totalMonthlyDebt / grossIncome) * 100;
// 4. Determine Status based on Industry Standards
var statusText = "";
var statusClass = "";
var adviceText = "";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio <= 50) {
statusText = "High Risk";
statusClass = "status-bad";
adviceText = "You may face difficulty getting approved for a qualified mortgage.";
} else {
statusText = "Critical";
statusClass = "status-bad";
adviceText = "Your debt load is very high relative to your income. Consider debt reduction strategies.";
}
// 5. Update DOM elements
var resultBox = document.getElementById('dtiResult');
var percentageDisplay = document.getElementById('dtiPercentageDisplay');
var statusDisplay = document.getElementById('dtiStatusDisplay');
var breakdownDisplay = document.getElementById('dtiBreakdown');
percentageDisplay.innerHTML = dtiRatio.toFixed(1) + "%";
statusDisplay.innerHTML = statusText;
statusDisplay.className = "dti-status " + statusClass;
breakdownDisplay.innerHTML =
"
Total Monthly Debt: $" + totalMonthlyDebt.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" +
"
Gross Monthly Income: $" + grossIncome.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" +
"
" + adviceText + "";
// Show result
resultBox.style.display = "block";
}
Understanding Your Debt-to-Income (DTI) Ratio
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your ability to repay a new loan. Unlike your credit score, which measures your history of paying debts, your DTI measures your capacity to take on new debt based on your current income.
How DTI is Calculated
The formula for DTI is relatively simple but powerful. It is calculated by dividing your total recurring monthly debt payments by your gross monthly income (income before taxes and deductions).
Formula: (Total Monthly Debt Payments / Gross Monthly Income) x 100
For example, if you pay $1,500 in rent, $300 for a car loan, and $200 on credit cards, your total debt is $2,000. If you earn $6,000 a month before taxes, your DTI is 33% ($2,000 / $6,000).
What Do the Numbers Mean?
Financial institutions typically categorize DTI ratios into the following brackets:
- 35% or less: Considered excellent. You have manageable debt and plenty of disposable income. Lenders offer the best interest rates to borrowers in this range.
- 36% to 43%: This is the standard acceptable range for most mortgages. While you can get approved, lenders may scrutinize your application more closely.
- 44% to 50%: You are entering a high-risk zone. Some lenders (like FHA) may still approve loans in this bracket with compensating factors (like high cash reserves), but conventional loans become difficult to secure.
- Above 50%: Most lenders will decline loan applications as this indicates you have very little room in your budget for unexpected expenses or new debt obligations.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios:
- Front-End Ratio: This only calculates your housing-related expenses (mortgage, property tax, insurance) divided by income. Ideally, this should be under 28%.
- Back-End Ratio: This includes housing expenses plus all other recurring debts (credit cards, student loans, car loans). This is the number calculated by the tool above and is the primary figure used for loan approval limits (typically capped at 43%).
How to Lower Your DTI
If your ratio is higher than 43%, consider these strategies before applying for a major loan:
- Pay off smaller debts completely to eliminate the monthly payment obligation.
- Refinance high-interest loans to lower the monthly payment.
- Increase your income through a side hustle or asking for a raise (since DTI uses gross income).
- Avoid taking on any new debt or opening new credit cards before your application.