Calculate your DTI ratio to understand your borrowing power.
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Your Debt-to-Income Ratio
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What is the Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal finance measure that compares your monthly debt payment to your monthly gross income. Lenders use this ratio to determine your ability to manage your monthly payments and repay the money you plan to borrow.
How to Interpret Your Result
35% or less: This is generally viewed as favorable. You have debt, but it is manageable in relation to your income. Lenders view you as a low-risk borrower.
36% to 49%: You have a moderate amount of debt. While many lenders will still approve loans in this range, you may be asked to meet additional criteria or pay higher interest rates.
50% or higher: This is considered high risk. With more than half your income going towards debt, you have limited flexibility for unexpected expenses. Lenders may decline loan applications until this number decreases.
Why is DTI Important for Mortgages?
When applying for a mortgage, the "Back-End Ratio" (which includes your new mortgage payment plus all other monthly debts) is critical. Most conventional loans require a DTI under 43%, though FHA loans sometimes allow higher ratios depending on other factors like your credit score.
function calculateDTI() {
// Get input values
var annualIncome = parseFloat(document.getElementById("annualIncome").value) || 0;
var monthlyHousing = parseFloat(document.getElementById("monthlyHousing").value) || 0;
var monthlyCar = parseFloat(document.getElementById("monthlyCar").value) || 0;
var monthlyCards = parseFloat(document.getElementById("monthlyCards").value) || 0;
var monthlyStudent = parseFloat(document.getElementById("monthlyStudent").value) || 0;
var monthlyOther = parseFloat(document.getElementById("monthlyOther").value) || 0;
// Validate Income
if (annualIncome <= 0) {
alert("Please enter a valid Annual Gross Income greater than zero.");
return;
}
// Calculations
var monthlyGrossIncome = annualIncome / 12;
var totalMonthlyDebt = monthlyHousing + monthlyCar + monthlyCards + monthlyStudent + monthlyOther;
var dtiRatio = (totalMonthlyDebt / monthlyGrossIncome) * 100;
// Formatting results
var dtiFinal = dtiRatio.toFixed(2);
// Determine Status
var statusText = "";
var statusClass = "";
var resultBox = document.getElementById("resultContainer");
var statusElement = document.getElementById("dtiStatus");
if (dtiRatio 35 && dtiRatio < 50) {
statusText = "Manageable / Caution";
statusClass = "status-warning";
resultBox.style.borderLeftColor = "#ffc107";
} else {
statusText = "High Risk";
statusClass = "status-danger";
resultBox.style.borderLeftColor = "#dc3545";
}
// Display Logic
resultBox.style.display = "block";
document.getElementById("dtiResult").innerHTML = dtiFinal + "%";
// Reset classes
statusElement.className = "dti-result-status " + statusClass;
statusElement.innerHTML = statusText;
// Detailed breakdown string
document.getElementById("breakdown").innerHTML =
"Monthly Gross Income: $" + monthlyGrossIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" +
"Total Monthly Debt: $" + totalMonthlyDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "";
}