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Debt-to-Income (DTI) Ratio Calculator :root { –primary-color: #2c3e50; –accent-color: #3498db; –success-color: #27ae60; –warning-color: #f39c12; –danger-color: #c0392b; –light-bg: #f8f9fa; –border-color: #e0e0e0; } body { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; line-height: 1.6; color: #333; max-width: 1200px; margin: 0 auto; padding: 20px; } .calculator-wrapper { background: #fff; border: 1px solid var(–border-color); border-radius: 8px; box-shadow: 0 4px 6px rgba(0,0,0,0.05); padding: 30px; margin-bottom: 40px; } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 30px; } @media (max-width: 768px) { .calc-grid { grid-template-columns: 1fr; } } .input-group { margin-bottom: 20px; } .input-group label { display: block; font-weight: 600; margin-bottom: 8px; color: var(–primary-color); } .input-wrapper { position: relative; } .input-wrapper span { position: absolute; left: 10px; top: 50%; transform: translateY(-50%); color: #777; } .input-group input { width: 100%; padding: 12px 12px 12px 25px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; box-sizing: border-box; } .section-title { font-size: 1.2rem; font-weight: bold; margin-bottom: 15px; border-bottom: 2px solid var(–accent-color); padding-bottom: 5px; margin-top: 0; } button.calc-btn { background: var(–accent-color); color: white; border: none; padding: 15px 30px; font-size: 18px; font-weight: bold; border-radius: 4px; cursor: pointer; width: 100%; transition: background 0.3s; margin-top: 10px; } button.calc-btn:hover { background: #2980b9; } #results-area { background: var(–light-bg); padding: 25px; border-radius: 8px; border: 1px solid var(–border-color); display: none; text-align: center; } .result-metric { margin-bottom: 20px; } .result-value { font-size: 3rem; font-weight: 800; color: var(–primary-color); } .result-label { font-size: 1.1rem; color: #666; } .status-badge { display: inline-block; padding: 8px 16px; border-radius: 20px; color: white; font-weight: bold; margin-top: 10px; } .content-article h2 { color: var(–primary-color); margin-top: 30px; } .content-article h3 { color: var(–accent-color); } .content-article ul { margin-bottom: 20px; } .content-article li { margin-bottom: 10px; } .info-tooltip { font-size: 0.85em; color: #666; margin-top: 4px; }

Debt-to-Income (DTI) Ratio Calculator

1. Monthly Income
$
Include salary, bonuses, alimony received, etc.
2. Monthly Debt Payments
$
Include HOA fees, property tax, and insurance.
$
$
$
$
Your Debt-to-Income Ratio
0%
Unknown

Breakdown:

Total Monthly Income: $0

Total Monthly Debt: $0

Why this matters: Lenders use this number to determine your ability to repay a new loan. Generally, a DTI under 36% is ideal, while anything over 43% makes obtaining a qualified mortgage difficult.

Understanding Your Debt-to-Income (DTI) Ratio

Your Debt-to-Income (DTI) ratio is one of the most critical financial metrics used by lenders when you apply for credit, specifically for mortgages. Unlike your credit score, which measures your credit history, your DTI measures your monthly cash flow and ability to manage monthly payments.

How DTI is Calculated

The formula for calculating DTI is relatively straightforward, but accuracy is key. The calculator above uses the standard lending formula:

DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100

Gross Monthly Income is your income before taxes and deductions. Monthly Debt Payments include your housing costs (rent/mortgage, insurance, taxes) plus minimum payments on credit cards, student loans, car loans, and other personal debts.

Interpreting Your Results

  • 35% or less (Excellent): You are in a strong financial position. Lenders view you as a low-risk borrower, and you likely have disposable income remaining after bills.
  • 36% to 42% (Good/Manageable): You are generally eligible for most loans, including conventional mortgages, though you may have slightly less flexibility in your budget.
  • 43% to 49% (Concerning): This is the tipping point. 43% is often the maximum DTI for a "Qualified Mortgage." While you may still qualify for FHA loans, you are carrying a heavy debt load relative to your income.
  • 50% or higher (Critical): At this level, you are considered high risk. You may have trouble accessing new credit, and a significant portion of your income is going immediately to debt service.

Front-End vs. Back-End Ratio

While the calculator above focuses on your total (Back-End) DTI, lenders also look at the Front-End ratio:

  • Front-End Ratio: Only includes housing expenses (Principal, Interest, Taxes, Insurance, HOA) divided by income. Ideally, this should be under 28%.
  • Back-End Ratio: Includes housing plus all other recurring debts. Ideally, this should be under 36%.

How to Lower Your DTI

If your ratio is higher than desired, you have two primary levers to pull:

  1. Increase Income: Taking on a side hustle, asking for a raise, or including a co-borrower on a loan application can increase the denominator of the equation.
  2. Reduce Recurring Debt: Paying off a car loan or eliminating credit card balances lowers the numerator. Note: Paying down a balance doesn't always help your DTI unless you eliminate the monthly payment entirely or refinance for a lower monthly cost.
function calculateDTI() { // 1. Get Input Values var incomeInput = document.getElementById('dti_gross_income').value; var housingInput = document.getElementById('dti_housing').value; var autoInput = document.getElementById('dti_auto').value; var studentInput = document.getElementById('dti_student').value; var cardsInput = document.getElementById('dti_cards').value; var otherInput = document.getElementById('dti_other').value; // 2. Parse values to floats, defaulting to 0 if empty var income = parseFloat(incomeInput) || 0; var housing = parseFloat(housingInput) || 0; var auto = parseFloat(autoInput) || 0; var student = parseFloat(studentInput) || 0; var cards = parseFloat(cardsInput) || 0; var other = parseFloat(otherInput) || 0; // 3. Validation if (income <= 0) { alert("Please enter a valid Gross Monthly Income greater than 0."); return; } // 4. Perform Calculation var totalDebt = housing + auto + student + cards + other; var dtiRatio = (totalDebt / income) * 100; // 5. Update UI with numbers var dtiFormatted = dtiRatio.toFixed(1); document.getElementById('dti_final_percent').innerText = dtiFormatted + "%"; document.getElementById('display_income').innerText = "$" + income.toLocaleString('en-US', {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('display_debt').innerText = "$" + totalDebt.toLocaleString('en-US', {minimumFractionDigits: 0, maximumFractionDigits: 0}); // 6. Determine Status and Colors var statusBadge = document.getElementById('dti_status_badge'); var lenderVerdict = document.getElementById('lender_verdict'); var statusText = ""; var statusColor = ""; var verdictText = ""; if (dtiRatio <= 35) { statusText = "Excellent"; statusColor = "#27ae60"; // Green verdictText = "You have a healthy debt-to-income balance. You likely qualify for the best rates."; } else if (dtiRatio <= 43) { statusText = "Good / Manageable"; statusColor = "#f39c12"; // Orange verdictText = "Your debt is manageable. You likely meet the requirements for a Qualified Mortgage."; } else if (dtiRatio <= 49) { statusText = "High Risk"; statusColor = "#e67e22"; // Darker Orange verdictText = "Your DTI is high. You might struggle to get approved for conventional loans, though FHA might be an option."; } else { statusText = "Critical"; statusColor = "#c0392b"; // Red verdictText = "Your debt load is critical relative to your income. Lenders will view this as very high risk."; } // 7. Update Status Elements statusBadge.innerText = statusText; statusBadge.style.backgroundColor = statusColor; lenderVerdict.innerText = verdictText; // 8. Show Results Area document.getElementById('results-area').style.display = "block"; }

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