Your Debt-to-Income (DTI) ratio is a critical financial metric used by lenders to assess your ability to manage monthly payments and repay debts. It represents the percentage of your gross monthly income that goes toward paying debts.
A lower DTI ratio demonstrates a good balance between debt and income. Generally, lenders prefer a DTI ratio below 36%, with no more than 28% going toward servicing a mortgage. A DTI above 43% is often considered the highest ratio a borrower can have and still get qualified for a Qualified Mortgage.
Use the calculator below to determine your current DTI ratio by entering your gross monthly income and various monthly debt obligations.
Enter your total income before taxes and deductions.
Monthly Debt Obligations
function calculateDTIRatio() {
// Get DOM elements matching exact IDs specified in HTML
var incomeInput = document.getElementById("grossMonthlyIncome");
var rentInput = document.getElementById("monthlyRentMortgage");
var carInput = document.getElementById("monthlyCarLoan");
var studentInput = document.getElementById("monthlyStudentLoan");
var creditCardInput = document.getElementById("monthlyCreditCards");
var otherDebtInput = document.getElementById("otherMonthlyDebt");
var resultDiv = document.getElementById("dtiResultOutput");
// Parse values, defaulting to 0 if empty or invalid
var grossIncome = parseFloat(incomeInput.value) || 0;
var rent = parseFloat(rentInput.value) || 0;
var car = parseFloat(carInput.value) || 0;
var student = parseFloat(studentInput.value) || 0;
var cards = parseFloat(creditCardInput.value) || 0;
var other = parseFloat(otherDebtInput.value) || 0;
// Show result container
resultDiv.style.display = "block";
// Validate income
if (grossIncome <= 0) {
resultDiv.innerHTML = 'Please enter a valid Gross Monthly Income greater than zero to calculate DTI.';
return;
}
// Calculate total monthly debt
var totalMonthlyDebt = rent + car + student + cards + other;
// Calculate DTI percentage
var dtiPercentage = (totalMonthlyDebt / grossIncome) * 100;
// Determine interpretation status
var statusMessage = "";
var statusColor = "";
if (dtiPercentage 36 && dtiPercentage <= 43) {
statusMessage = "Manageable. You may qualify for loans, but lenders might require additional scrutiny.";
statusColor = "#dba617"; // Orangeish yellow
} else {
statusMessage = "High Risk. It may be difficult to qualify for a standard mortgage or significant new credit.";
statusColor = "#d63638"; // Red
}
// Output final result
resultDiv.innerHTML = 'Total Monthly Debt Obligations: $' + totalMonthlyDebt.toFixed(2) + '' +
'
Your DTI Ratio is: ' + dtiPercentage.toFixed(1) + '%
' +
'Interpretation: ' + statusMessage + ";
}
Understanding Your Results
The calculator adds up your entered monthly debt obligations and divides that total by your gross monthly income. For example, if your gross monthly income is $5,000 and your total monthly debt payments (rent, car, credit cards) equal $2,000, your DTI ratio is 40% ($2,000 / $5,000 = 0.40).
Knowing your DTI is essential before applying for significant credit, such as a home mortgage or auto loan. If your ratio is high, consider strategies to lower it, such as paying down existing high-interest debt or increasing your income, before submitting loan applications.