Calculate your backend DTI to assess mortgage eligibility and financial health.
$
Monthly Debt Payments
$
$
$
$
$
Your Debt-to-Income Ratio
0%
function calculateDTI() {
// 1. Get Values
var income = parseFloat(document.getElementById("grossIncome").value) || 0;
var housing = parseFloat(document.getElementById("housingCost").value) || 0;
var car = parseFloat(document.getElementById("carLoans").value) || 0;
var student = parseFloat(document.getElementById("studentLoans").value) || 0;
var cards = parseFloat(document.getElementById("creditCards").value) || 0;
var other = parseFloat(document.getElementById("otherDebts").value) || 0;
// 2. Validation
if (income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// 3. Calculation Logic
var totalDebt = housing + car + student + cards + other;
var dtiRatio = (totalDebt / income) * 100;
// 4. Formatting Result
var finalDTI = dtiRatio.toFixed(2);
// 5. Display Logic
var resultBox = document.getElementById("dtiResult");
var valueDisplay = document.getElementById("dtiValue");
var messageDisplay = document.getElementById("dtiMessage");
var summaryDisplay = document.getElementById("dtiSummary");
resultBox.style.display = "block";
valueDisplay.innerHTML = finalDTI + "%";
// Determine Status
var message = "";
var statusClass = "";
var summaryText = "You spend $" + totalDebt.toLocaleString() + " on debt payments for every $" + income.toLocaleString() + " earned.";
if (dtiRatio 36 && dtiRatio 43 && dtiRatio <= 50) {
message = "High Risk";
statusClass = "status-ok";
resultBox.style.borderLeftColor = "#f39c12";
summaryText += " You may face difficulty getting approved for a standard mortgage. Consider reducing debt before applying.";
} else {
message = "Critical";
statusClass = "status-bad";
resultBox.style.borderLeftColor = "#c0392b";
summaryText += " Your debt load is significantly high relative to your income. Lenders are unlikely to approve new credit lines.";
}
// Update classes
messageDisplay.className = "dti-status " + statusClass;
messageDisplay.innerText = message;
summaryDisplay.innerText = summaryText;
}
Understanding Debt-to-Income (DTI) Ratio
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your ability to repay a loan. It compares your total monthly debt payments to your gross monthly income. This calculator focuses on the "Back-End Ratio," which includes all monthly debt obligations, not just housing costs.
How to Interpret Your DTI Score
36% or less: This is the "Gold Standard." Most lenders see this as a healthy balance between debt and income, allowing for easy approval and competitive interest rates.
36% to 43%: This range is generally acceptable for most conventional mortgages and FHA loans. However, lenders might check if you have significant savings or other compensating factors.
43% to 50%: This is the "Danger Zone." While some FHA loans allow ratios up to 50% (or even higher with strong justifications), your options become limited, and interest rates may be higher.
Above 50%: Most qualified mortgages are not available to borrowers with a DTI above 50%. It indicates that more than half of your pre-tax income is going immediately to debt, leaving little for living expenses and taxes.
What is Included in DTI Calculations?
When using this DTI calculator, ensure you include recurring monthly debts such as:
Future or current mortgage/rent payments (including HOA fees, taxes, and insurance).
Auto loan or lease payments.
Minimum monthly credit card payments (not the total balance).
Student loan payments.
Alimony or child support payments.
Personal loans.
Note: Generally, monthly expenses like groceries, utilities, and phone bills are NOT included in the DTI calculation.
Frequently Asked Questions
Does DTI affect my credit score?
No, your DTI ratio is not part of your credit score calculation. However, high credit utilization (which often correlates with high DTI) does hurt your credit score.
Can I lower my DTI quickly?
Yes. The fastest ways are to pay off small debts to eliminate monthly payments, refinance loans to lower monthly obligations (though this extends the term), or increase your gross income through a raise or side hustle.
What is the Front-End Ratio?
The Front-End Ratio only calculates housing-related expenses (Mortgage + Taxes + Insurance) divided by income. Most lenders prefer this to be under 28%.