.dti-calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
color: #333;
line-height: 1.6;
}
.dti-calc-box {
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.dti-row {
display: flex;
flex-wrap: wrap;
margin-bottom: 15px;
justify-content: space-between;
align-items: center;
}
.dti-col {
flex: 0 0 48%;
min-width: 250px;
margin-bottom: 10px;
}
.dti-label {
display: block;
font-weight: 600;
margin-bottom: 5px;
font-size: 14px;
color: #444;
}
.dti-input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.dti-input:focus {
border-color: #0073aa;
outline: none;
box-shadow: 0 0 0 2px rgba(0,115,170,0.2);
}
.dti-btn {
background-color: #0073aa;
color: #fff;
border: none;
padding: 12px 25px;
font-size: 16px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.2s;
margin-top: 10px;
}
.dti-btn:hover {
background-color: #005177;
}
.dti-result-box {
margin-top: 25px;
padding: 20px;
background: #fff;
border-left: 5px solid #0073aa;
display: none;
}
.dti-result-value {
font-size: 32px;
font-weight: 800;
color: #0073aa;
}
.dti-result-status {
font-weight: bold;
margin-top: 5px;
}
.status-good { color: #2ecc71; }
.status-warning { color: #f39c12; }
.status-bad { color: #e74c3c; }
.dti-article h2 {
font-size: 24px;
margin-top: 30px;
margin-bottom: 15px;
color: #2c3e50;
}
.dti-article h3 {
font-size: 20px;
margin-top: 25px;
margin-bottom: 10px;
color: #34495e;
}
.dti-article p {
margin-bottom: 15px;
font-size: 16px;
}
.dti-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.dti-article li {
margin-bottom: 8px;
}
.section-header {
font-size: 18px;
font-weight: bold;
margin-bottom: 15px;
border-bottom: 1px solid #ddd;
padding-bottom: 5px;
color: #555;
width: 100%;
}
function calculateDTI() {
// Get Input Values
var income = parseFloat(document.getElementById('grossIncome').value) || 0;
var rent = parseFloat(document.getElementById('rentMortgage').value) || 0;
var car = parseFloat(document.getElementById('carLoan').value) || 0;
var student = parseFloat(document.getElementById('studentLoan').value) || 0;
var cards = parseFloat(document.getElementById('creditCards').value) || 0;
var other = parseFloat(document.getElementById('otherDebt').value) || 0;
// Elements to display results
var resultBox = document.getElementById('dtiResult');
var valueDisplay = document.getElementById('dtiValue');
var statusDisplay = document.getElementById('dtiStatus');
var summaryDisplay = document.getElementById('dtiSummary');
// Validation
if (income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
resultBox.style.display = "none";
return;
}
// Calculation
var totalDebt = rent + car + student + cards + other;
var dtiRatio = (totalDebt / income) * 100;
// Formatting
var finalDti = dtiRatio.toFixed(2);
// Determine Status
var statusText = "";
var statusClass = "";
var summaryText = "";
if (dtiRatio <= 35) {
statusText = "Excellent";
statusClass = "status-good";
summaryText = "Your debt load is very manageable. You are in a great position to apply for new credit or loans.";
} else if (dtiRatio <= 42) {
statusText = "Good / Manageable";
statusClass = "status-warning";
summaryText = "Your debt is manageable, but you are approaching the limits preferred by some conservative lenders.";
} else if (dtiRatio <= 49) {
statusText = "High Risk";
statusClass = "status-warning"; // Darker yellow/orange
summaryText = "You may face difficulties getting approved for a mortgage. Consider paying down debt before applying.";
} else {
statusText = "Critical";
statusClass = "status-bad";
summaryText = "More than half your income goes to debt. It is highly recommended to focus on debt repayment immediately.";
}
// Output Results
valueDisplay.innerHTML = finalDti + "%";
statusDisplay.innerHTML = statusText;
statusDisplay.className = "dti-result-status " + statusClass;
summaryDisplay.innerHTML = summaryText;
resultBox.style.display = "block";
}
Calculate Your Debt-to-Income Ratio
1. Monthly Income (Before Taxes)
2. Monthly Debt Payments
Your Debt-to-Income Ratio
0.00%
What is a Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your creditworthiness. Unlike your credit score, which tracks your payment history, the DTI ratio measures your ability to manage monthly payments. It is calculated by dividing your total recurring monthly debt by your gross monthly income.
Lenders use this percentage to determine how much of your income is already spoken for. A lower DTI suggests you have sufficient income to handle new debt, making you a safer candidate for mortgages, auto loans, and personal lines of credit.
How to Calculate Your DTI Ratio
The formula for DTI is straightforward, but it requires accurate data regarding your finances. It does not typically include monthly expenses like groceries, utilities, or entertainment—only debt obligations.
The Formula:
DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100
Step-by-Step Calculation:
- Sum your monthly debts: Add up your rent/mortgage, minimum credit card payments, student loans, auto loans, and any other court-ordered payments like child support.
- Determine gross income: This is your income before taxes and deductions. If you are salaried, divide your annual salary by 12.
- Divide and Multiply: Divide the total debt by the gross income, then multiply by 100 to get the percentage.
Interpreting Your DTI Score
Different lenders have different thresholds, but general financial guidelines categorize DTI ratios as follows:
- 35% or less (Excellent): You have a manageable level of debt relative to your income. Lenders view you as a low-risk borrower, and you likely qualify for the best interest rates.
- 36% to 42% (Manageable): You are in a decent position, but lenders might examine your application more closely. You may still qualify for loans, though perhaps not at the absolute lowest tier of rates.
- 43% to 49% (Concerning): This is often the upper limit for obtaining a Qualified Mortgage. You may find it difficult to get approved for new credit without paying off some debt first.
- 50% or higher (Critical): More than half of your income goes to debt. This indicates financial distress. Lenders will likely view you as high-risk, and you should prioritize debt reduction immediately.
Front-End vs. Back-End DTI
In mortgage lending, you might hear about two types of DTI ratios:
- Front-End Ratio: This only calculates housing-related expenses (mortgage principal, interest, taxes, insurance) against your income. Lenders typically prefer this to be under 28%.
- Back-End Ratio: This includes housing expenses plus all other recurring debt (credit cards, student loans, etc.). This is the number calculated by the tool above. Lenders typically prefer this to be under 36% (though up to 43% is often accepted for FHA or conventional loans).
How to Lower Your DTI Ratio
If your DTI is higher than 43%, consider these strategies to lower it before applying for a major loan:
- Increase your income: Take on freelance work, ask for a raise, or include a co-signer's income if applicable.
- Pay down high-balance debts: Use the "snowball" or "avalanche" method to eliminate monthly obligations like credit cards or personal loans.
- Refinance loans: Lowering the monthly payment on a car loan or student loan through refinancing can immediately improve your DTI, even if the total debt amount remains similar.
- Avoid new debt: Do not open new credit lines or make large purchases on credit before applying for a mortgage.