Wells Fargo Loan Rate Calculator

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Debt-to-Income (DTI) Ratio Calculator: Understanding Your Borrowing Power

Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your financial health. Before approving a mortgage, auto loan, or personal loan, banks want to know how much of your monthly gross income goes toward paying existing debts. A lower DTI ratio generally signifies a good balance between debt and income, making you a more attractive borrower.

Use our specific DTI calculator below to determine your current ratio and understand where you stand financially.

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DTI Ratio Calculator

Income (Monthly)
Recurring Debts (Monthly Payments)
Please enter a valid Gross Monthly Income greater than zero.
Total Monthly Debt:
Your DTI Ratio:
Status:
function calculateDTI() { // 1. Retrieve inputs using var and getElementById var grossIncomeInput = document.getElementById('dti-gross-income').value; var mortgageRentInput = document.getElementById('dti-mortgage-rent').value; var autoLoanInput = document.getElementById('dti-auto-loan').value; var studentLoanInput = document.getElementById('dti-student-loan').value; var creditCardsInput = document.getElementById('dti-credit-cards').value; var otherDebtInput = document.getElementById('dti-other-debt').value; // 2. Parse inputs to floats, handling empty strings or NaNs by defaulting debts to 0 var grossIncome = parseFloat(grossIncomeInput); var mortgageRent = mortgageRentInput === "" || isNaN(parseFloat(mortgageRentInput)) ? 0 : parseFloat(mortgageRentInput); var autoLoan = autoLoanInput === "" || isNaN(parseFloat(autoLoanInput)) ? 0 : parseFloat(autoLoanInput); var studentLoan = studentLoanInput === "" || isNaN(parseFloat(studentLoanInput)) ? 0 : parseFloat(studentLoanInput); var creditCards = creditCardsInput === "" || isNaN(parseFloat(creditCardsInput)) ? 0 : parseFloat(creditCardsInput); var otherDebt = otherDebtInput === "" || isNaN(parseFloat(otherDebtInput)) ? 0 : parseFloat(otherDebtInput); var errorDiv = document.getElementById('dti-error'); var resultsDiv = document.getElementById('dti-results-container'); // 3. Validate Income (must be present and > 0 to avoid division by zero) if (isNaN(grossIncome) || grossIncome <= 0) { errorDiv.style.display = 'block'; resultsDiv.style.display = 'none'; return; // Exit function } else { errorDiv.style.display = 'none'; } // 4. Calculate Total Monthly Debt var totalMonthlyDebt = mortgageRent + autoLoan + studentLoan + creditCards + otherDebt; // 5. Calculate DTI Ratio Percentage // Formula: (Total Monthly Debt / Gross Monthly Income) * 100 var dtiRatio = (totalMonthlyDebt / grossIncome) * 100; // 6. Determine Status based on general lending guidelines var statusText = ""; var statusClass = ""; if (dtiRatio 36 && dtiRatio <= 43) { statusText = "Manageable (May face stricter mortgage requirements)"; statusClass = "dti-status-warning"; } else { statusText = "High Risk (Difficult to obtain qualified mortgages)"; statusClass = "dti-status-danger"; } // 7. Display Results document.getElementById('dti-total-debt-result').innerHTML = "$" + totalMonthlyDebt.toFixed(2); var ratioSpan = document.getElementById('dti-ratio-result'); ratioSpan.innerHTML = dtiRatio.toFixed(2) + "%"; var statusSpan = document.getElementById('dti-status-result'); statusSpan.innerHTML = statusText; statusSpan.className = statusClass; // Reset and apply new class resultsDiv.style.display = 'block'; }

How to Interpret Your DTI Results

The calculator above sums your recurring monthly obligations (like rent, car payments, and student loans) and divides that total by your pre-tax monthly income. The resulting percentage is your DTI ratio.

  • 36% or lower: This is generally considered an excellent range. Lenders view you as low risk, indicating you have sufficient disposable income to handle new debt.
  • 37% to 43%: You fall into a "manageable" zone. While you can likely still get approved for a mortgage, you might face slightly higher interest rates or be required to provide additional documentation. 43% is often the highest DTI a borrower can have to get a Qualified Mortgage.
  • 44% or higher: This range indicates financial distress to lenders. You might struggle to make monthly payments if emergencies arise. Getting approved for significant loans in this bracket is difficult without a co-signer or significant assets.

Note: This calculator is for informational purposes only and does not constitute financial advice. Lending criteria vary by institution and loan type.

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