Determine your borrowing power and mortgage eligibility.
Your total income before taxes and deductions.
Include principal, interest, taxes, and insurance (PITI).
Include alimony, child support, or personal loans.
Your DTI Results
0%
Total Monthly Debt: $0
Gross Monthly Income: $0
function calculateDTI() {
// Get input values
var income = parseFloat(document.getElementById('grossMonthlyIncome').value);
var housing = parseFloat(document.getElementById('monthlyRentMortgage').value);
var car = parseFloat(document.getElementById('monthlyCarLoans').value);
var credit = parseFloat(document.getElementById('monthlyCreditCards').value);
var loans = parseFloat(document.getElementById('monthlyStudentLoans').value);
// Validate Income
if (isNaN(income) || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// Handle empty or NaN debt fields by treating them as 0
if (isNaN(housing)) housing = 0;
if (isNaN(car)) car = 0;
if (isNaN(credit)) credit = 0;
if (isNaN(loans)) loans = 0;
// Calculate Totals
var totalDebt = housing + car + credit + loans;
var dtiRatio = (totalDebt / income) * 100;
// Display Results Div
var resultBox = document.getElementById('dtiResultBox');
resultBox.style.display = "block";
resultBox.style.borderLeftColor = "#ccc"; // default reset
// Update Text Content
document.getElementById('totalDebtDisplay').innerText = totalDebt.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('grossIncomeDisplay').innerText = income.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('dtiPercentageDisplay').innerText = dtiRatio.toFixed(2) + "%";
// Interpret Results
var statusText = document.getElementById('dtiStatusText');
var lenderMsg = document.getElementById('lenderMessage');
var resultDisplay = document.getElementById('dtiPercentageDisplay');
// Reset classes
statusText.className = "dti-status";
if (dtiRatio 36 && dtiRatio <= 43) {
statusText.innerText = "Manageable / Caution";
statusText.classList.add("status-warning");
resultBox.style.borderLeftColor = "#ffc107";
lenderMsg.innerText = "You may still qualify for a mortgage, but lenders might require strict proof of income. Try to pay down some debt before applying.";
} else {
statusText.innerText = "Critical / High Risk";
statusText.classList.add("status-bad");
resultBox.style.borderLeftColor = "#dc3545";
lenderMsg.innerText = "Most lenders limit back-end DTI to 43%. You may face difficulty getting approved for a qualified mortgage. Focus on debt reduction immediately.";
}
}
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 financial health. Unlike your credit score, which measures your history of paying back debts, your DTI measures your capacity to repay new debt based on your current income. Whether you are applying for a mortgage, an auto loan, or a personal line of credit, knowing your DTI is the first step toward financial approval.
What is the DTI Ratio?
The Debt-to-Income ratio is a percentage that compares your total monthly debt payments to your gross monthly income (income before taxes). Lenders use this percentage to determine how risky it is to lend you money. A lower DTI indicates that you have a good balance between debt and income, while a higher DTI suggests that you may struggle to make monthly payments if your financial situation changes.
The Formula
The calculation is straightforward but requires accuracy regarding your monthly obligations:
When using our DTI Calculator, it is important to include the recurring debts that appear on your credit report. This typically includes:
Housing Costs: Your monthly rent or mortgage payment (including principal, interest, taxes, and insurance).
Auto Loans: Monthly lease or loan payments for all vehicles.
Credit Cards: The minimum monthly payment required, not necessarily the full balance.
Student Loans: Monthly repayments for federal or private education loans.
Other Debts: Personal loans, alimony, or child support payments.
Note: Generally, monthly expenses like groceries, utilities, gym memberships, and gas are NOT included in the DTI calculation.
Interpreting Your Score: The 28/36 Rule
Financial institutions often use the "28/36 rule" as a benchmark for mortgage underwriting:
DTI Range
Interpretation
Lender Perception
0% – 36%
Healthy Zone
Ideally, your total debt (including housing) should not exceed 36% of your gross income. This is the "Back-End Ratio."
37% – 43%
Caution Zone
You may still get approved for a Qualified Mortgage (QM), but interest rates might be higher, or you may need a larger down payment.
44% and above
High Risk
Most lenders draw a hard line at 43% for conventional loans. You will likely need to lower your debt or increase income to qualify.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios that mortgage lenders look at:
Front-End Ratio: This only calculates your housing-related expenses (Mortgage, HOA, Property Tax) divided by your income. Lenders prefer this to be under 28%.
Back-End Ratio: This includes housing PLUS all other consumer debts (credit cards, cars, etc.). This is the number calculated by the tool above. Lenders prefer this to be under 36%, with an absolute max usually around 43% for conventional loans (FHA loans may allow up to 50% in special circumstances).
How to Lower Your DTI Ratio
If your calculation shows a percentage higher than 43%, consider these strategies before applying for a major loan:
Pay Off Small Balances: Using the "Snowball Method" to eliminate credit cards with small balances can remove those monthly minimums from the equation entirely.
Refinance High-Interest Debt: Consolidating high-interest credit cards into a personal loan with a lower interest rate can reduce your total monthly obligation.
Increase Your Income: Taking on a side hustle or asking for a raise increases the denominator in the equation, naturally lowering your ratio even if debt stays the same.
Avoid New Debt: Do not open new credit accounts or finance large purchases like furniture or cars while preparing for a mortgage application.
Use the Debt-to-Income Ratio Calculator above regularly to track your progress as you pay down debt and improve your financial standing.