#dti-calculator-container .dti-card {
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 25px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 30px;
}
#dti-calculator-container h2 {
margin-top: 0;
color: #2c3e50;
border-bottom: 2px solid #3498db;
padding-bottom: 10px;
margin-bottom: 20px;
}
#dti-calculator-container .form-group {
margin-bottom: 15px;
}
#dti-calculator-container label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #34495e;
}
#dti-calculator-container input[type="number"] {
width: 100%;
padding: 10px;
border: 1px solid #bdc3c7;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
#dti-calculator-container .calc-btn {
width: 100%;
padding: 12px;
background-color: #2980b9;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
}
#dti-calculator-container .calc-btn:hover {
background-color: #1a5276;
}
#dti-calculator-container #dti-result-area {
margin-top: 25px;
padding: 20px;
background-color: #f8f9fa;
border-radius: 6px;
display: none;
border-left: 5px solid #2980b9;
}
#dti-calculator-container .dti-value {
font-size: 36px;
font-weight: bold;
color: #2c3e50;
display: block;
margin-bottom: 10px;
}
#dti-calculator-container .dti-status {
font-size: 18px;
font-weight: 600;
}
#dti-calculator-container .status-good { color: #27ae60; }
#dti-calculator-container .status-warn { color: #f39c12; }
#dti-calculator-container .status-bad { color: #c0392b; }
#dti-calculator-container .dti-article {
line-height: 1.6;
color: #333;
}
#dti-calculator-container .dti-article h3 {
color: #2c3e50;
margin-top: 25px;
}
#dti-calculator-container .dti-article ul {
margin-bottom: 20px;
}
function calculateDTIRatio() {
// 1. Get Inputs using getElementById
var incomeInput = document.getElementById('dti_gross_income');
var housingInput = document.getElementById('dti_housing');
var autoInput = document.getElementById('dti_auto');
var studentInput = document.getElementById('dti_student');
var cardsInput = document.getElementById('dti_cards');
var otherInput = document.getElementById('dti_other');
// 2. Parse values to floats, handling empty strings as 0
var income = parseFloat(incomeInput.value);
var housing = parseFloat(housingInput.value) || 0;
var auto = parseFloat(autoInput.value) || 0;
var student = parseFloat(studentInput.value) || 0;
var cards = parseFloat(cardsInput.value) || 0;
var other = parseFloat(otherInput.value) || 0;
// 3. Validation
var resultArea = document.getElementById('dti-result-area');
if (isNaN(income) || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
resultArea.style.display = 'none';
return;
}
// 4. Calculate Total Debt and DTI
var totalDebt = housing + auto + student + cards + other;
var dtiRatio = (totalDebt / income) * 100;
// 5. Display Logic
resultArea.style.display = 'block';
var finalPercentObj = document.getElementById('dti-final-percent');
var statusMsgObj = document.getElementById('dti-status-msg');
var breakdownObj = document.getElementById('dti-breakdown');
// Round to 2 decimal places
finalPercentObj.innerText = dtiRatio.toFixed(2) + "%";
// Determine Status
var statusText = "";
var statusClass = "";
var advice = "";
if (dtiRatio <= 35) {
statusText = "Excellent";
statusClass = "status-good";
advice = "Your debt load is very manageable. Lenders view you as a low-risk borrower.";
} else if (dtiRatio <= 43) {
statusText = "Good / Manageable";
statusClass = "status-warn";
advice = "You are within the acceptable range for most Qualified Mortgages, though budgeting is important.";
} else if (dtiRatio <= 49) {
statusText = "High Risk";
statusClass = "status-warn";
advice = "You may face difficulties getting approved for standard loans. Consider paying down debt.";
} else {
statusText = "Critical";
statusClass = "status-bad";
advice = "Over half your income goes to debt. Loan approval is unlikely without reducing debt or increasing income.";
}
// Update Status CSS and Text
statusMsgObj.className = "dti-status " + statusClass;
statusMsgObj.innerText = statusText;
// Update Breakdown
breakdownObj.innerHTML =
"Summary:" +
"Total Monthly Income: $" + income.toFixed(2) + "" +
"Total Monthly Debt: $" + totalDebt.toFixed(2) + "" +
"" + advice + "";
}
Debt-to-Income (DTI) Ratio Calculator
Your Debt-to-Income Ratio is:
0%
Understanding Your Debt-to-Income Ratio
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to determine your ability to repay a loan. Unlike your credit score, which measures your credit history, your DTI measures your current capacity to take on new debt.
Calculating your DTI involves dividing your total monthly debt payments by your gross monthly income (income before taxes and deductions). The result is expressed as a percentage.
Why DTI Matters for Mortgages
If you are applying for a mortgage, lenders typically look for a DTI ratio of 43% or lower. This is often the highest ratio a borrower can have and still get a Qualified Mortgage. Here is generally how lenders interpret the numbers:
- 35% or less: Considered excellent. You have plenty of income relative to your debt. Lenders view you as a low-risk borrower.
- 36% to 49%: Considered manageable, but you may face higher interest rates or stricter down payment requirements as you approach the upper end.
- 50% or more: Considered high risk. You may struggle to find a lender willing to approve a mortgage, as half your income is already committed to debt repayment.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios:
- Front-End Ratio: This only calculates your housing expenses (rent/mortgage, property tax, insurance) divided by your gross income. Lenders prefer this to be under 28%.
- Back-End Ratio: This includes housing expenses plus all other recurring debts (credit cards, car loans, student loans). This calculator determines your Back-End Ratio, which is the primary figure used for loan approval.
How to Lower Your DTI
If your DTI is higher than 43%, consider these strategies before applying for a major loan:
- Pay off high-interest credit cards to eliminate monthly minimums.
- Refinance existing loans to lower monthly payments (though this may extend the loan term).
- Increase your gross income through side hustles, overtime, or asking for a raise.
- Avoid taking on new debt, such as financing a car or furniture, before your mortgage application closes.