Your Debt-to-Income (DTI) ratio is a critical percentage lenders use to assess your ability to manage monthly payments and repay debts. It compares your total monthly debt payments to your gross monthly income. A lower DTI generally indicates better financial health and makes you a more attractive candidate for loans, especially mortgages.
1. Monthly Income
2. Monthly Recurring Debts
Enter the minimum required monthly payments.
Your Results
Total Monthly Debt: $
Your DTI Ratio is: %
Understanding Your DTI Score
Lenders have different requirements, but generally, the lower your DTI, the better. Here is a common breakdown used in mortgage lending:
35% or less (Excellent): Lenders view you as a low-risk borrower. You likely have manageable debt relative to your income.
36% to 43% (Good to Acceptable): Lenders may still approve financing, but you might face slightly higher interest rates or stricter requirements. 43% is often the highest ratio a borrower can have and still get a Qualified Mortgage.
44% to 49% (High Risk): Getting approved for a new loan will be difficult. Lenders may worry about your ability to take on added debt.
50% or higher (Critical): You may have difficulty meeting your current obligations. You need to focus on reducing debt or increasing income immediately.
Realistic Example
Imagine Sarah earns a gross salary of $60,000 per year, making her gross monthly income $5,000. Her monthly debts are: $1,400 for rent, a $300 car payment, $250 in student loans, and $150 in credit card minimums. Her total monthly debt is $2,100.
To find her DTI, she divides her total debt by her gross income ($2,100 / $5,000 = 0.42) and multiplies by 100. Sarah's DTI is 42%. This falls into the "Acceptable" range, meaning she could likely secure a mortgage, but perhaps not the absolute best terms.
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margin: 20px auto;
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line-height: 1.6;
color: #333;
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.calculator-box {
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padding: 25px;
border-radius: 8px;
border: 1px solid #e0e0e0;
margin-bottom: 30px;
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flex-direction: column;
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.input-group label {
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.input-group input {
padding: 10px;
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font-size: 16px;
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.calc-btn {
background-color: #0056b3;
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 18px;
width: 100%;
transition: background-color 0.3s;
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.calc-btn:hover {
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.result-box {
margin-top: 25px;
padding: 20px;
background-color: #e9f5ff;
border: 1px solid #b8daff;
border-radius: 5px;
}
.dti-highlight {
font-size: 1.2em;
color: #0056b3;
}
.status-excellent { color: #28a745; font-weight: bold; }
.status-good { color: #856404; font-weight: bold; }
.status-risk { color: #dc3545; font-weight: bold; }
function calculateDTI() {
// Helper function to safely get number values, defaulting empty inputs to 0
function getNumValue(id) {
var val = document.getElementById(id).value;
if (val === "" || isNaN(val)) {
return 0;
}
return parseFloat(val);
}
// 1. Get Inputs
var grossIncome = getNumValue("grossMonthlyIncome");
var housing = getNumValue("monthlyHousing");
var car = getNumValue("monthlyCar");
var student = getNumValue("monthlyStudent");
var cards = getNumValue("monthlyCreditCards");
var other = getNumValue("monthlyOtherDebt");
var resultBox = document.getElementById("dtiResult");
var totalDebtSpan = document.getElementById("totalMonthlyDebtResult");
var dtiPercentSpan = document.getElementById("dtiPercentageResult");
var analysisDiv = document.getElementById("dtiAnalysis");
// Basic validation: Income must be greater than 0 for calculation
if (grossIncome <= 0) {
alert("Please enter a Gross Monthly Income greater than zero.");
resultBox.style.display = "none";
return;
}
// 2. Calculate Total Debt
var totalDebt = housing + car + student + cards + other;
// 3. Calculate DTI Ratio
var dtiRatioDecimal = totalDebt / grossIncome;
var dtiRatioPercent = (dtiRatioDecimal * 100).toFixed(1);
// 4. Determine Analysis Status
var analysisMsg = "";
if (dtiRatioPercent <= 35) {
analysisMsg = "Status: Excellent. You have a low debt load relative to your income, making you attractive to lenders.";
} else if (dtiRatioPercent <= 43) {
analysisMsg = "Status: Good to Acceptable. Your ratio is within the typical range for most mortgage approvals.";
} else if (dtiRatioPercent < 50) {
analysisMsg = "Status: High Risk. You may find it difficult to obtain new credit or may face higher interest rates.";
} else {
analysisMsg = "Status: Critical. Your debt obligations are very high relative to your income. Consider debt reduction strategies.";
}
// 5. Display Results
totalDebtSpan.innerHTML = totalDebt.toFixed(2);
dtiPercentSpan.innerHTML = dtiRatioPercent;
analysisDiv.innerHTML = analysisMsg;
resultBox.style.display = "block";
}