Calculate your DTI to assess mortgage eligibility and financial health.
Your Debt-to-Income Ratio
0%
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Total Monthly Debt$0
Gross Monthly Income$0
Remaining Income$0
What is a Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal finance measure that compares an individual's monthly debt payment to their monthly gross income. It is one of the primary metrics lenders use to determine your ability to manage monthly payments and repay the money you plan to borrow.
Why DTI Matters for Mortgages and Loans
When you apply for a mortgage, auto loan, or personal loan, lenders want to know if you can afford the payments. A low DTI ratio demonstrates a good balance between debt and income. Conversely, a high DTI ratio can signal that an individual has too much debt for the amount of income earned, making them a higher risk for lenders.
Understanding Good vs. Bad DTI Ratios
35% or less: Considered excellent. You have manageable debt relative to your income and should have little trouble obtaining new lines of credit.
36% to 43%: This is often manageable, but you may want to lower some debts before taking on major new liabilities. 43% is typically the highest ratio a borrower can have and still get a Qualified Mortgage.
44% to 49%: Lenders may scrutinize your application more closely. You might face higher interest rates or require a co-signer.
50% or higher: Considered critical. You may have limited borrowing options and should focus on debt reduction strategies immediately.
Front-End vs. Back-End Ratio
Lenders often look at two types of DTI ratios:
Front-End Ratio: This only includes housing-related expenses (mortgage principal, interest, taxes, and insurance) divided by gross income. The ideal target is usually 28%.
Back-End Ratio: This is what our calculator computes. It includes housing expenses plus all other recurring debt payments (credit cards, student loans, car payments, etc.). The ideal target is usually 36%.
How to Lower Your DTI Ratio
To improve your ratio, you can either increase your income or decrease your debt. Practical steps include paying off high-interest credit cards, avoiding taking on new debt before a major purchase (like a home), and considering debt consolidation to lower monthly minimum payments.
function calculateDTI() {
// 1. Get Input Values
var income = parseFloat(document.getElementById('monthlyIncome').value);
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('otherDebt').value) || 0;
// 2. Validation
if (!income || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// 3. Perform Calculations
var totalMonthlyDebt = housing + car + student + cards + other;
var dtiRatio = (totalMonthlyDebt / income) * 100;
var remaining = income – totalMonthlyDebt;
// 4. Update UI Elements
// Format Numbers
var dtiFixed = dtiRatio.toFixed(1);
// Display Values
document.getElementById('dti-percent-display').innerText = dtiFixed + '%';
document.getElementById('total-debt-display').innerText = '$' + totalMonthlyDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('total-income-display').innerText = '$' + income.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('remaining-income-display').innerText = '$' + remaining.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Status Logic and Styling
var statusElement = document.getElementById('dti-status-message');
var adviceElement = document.getElementById('advice-text');
// Reset classes
statusElement.className = 'dti-status';
if (dtiRatio 35 && dtiRatio <= 43) {
statusElement.innerText = "Manageable Risk";
statusElement.classList.add('status-warning');
adviceElement.innerText = "You are within the approval range for most mortgages, but stick to a budget.";
} else {
statusElement.innerText = "High Risk Zone";
statusElement.classList.add('status-danger');
adviceElement.innerText = "Lenders may view this ratio as risky. Consider paying down debt before applying for new loans.";
}
// Show Result Container
document.getElementById('dti-result-container').style.display = 'block';
}