Calculate your DTI ratio to understand your financial health and mortgage eligibility.
Your DTI Ratio is:
0%
What is Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal financial measure that compares your total monthly debt payments to your monthly gross income. Lenders, specifically mortgage providers, use this percentage to determine your ability to manage monthly payments and repay borrowed money.
Gross income refers to your pay before taxes and other deductions are taken out. Monthly debt include recurring payments like mortgages, car loans, student loans, and minimum credit card payments. It generally does not include living expenses like groceries, utilities, or health insurance.
What is a Good DTI Ratio?
36% or Less: This is considered an ideal DTI. You have a healthy balance between debt and income.
37% to 43%: Most lenders still consider this acceptable, but you may find it harder to qualify for certain loan types.
44% to 50%: This is considered high. You may need significant cash reserves or a high credit score to secure a loan.
Above 50%: This suggests that more than half of your income goes to debt. You will likely struggle to qualify for additional credit.
Example Calculation
If your monthly gross income is $6,000 and your monthly debts are:
Mortgage: $1,500
Car Loan: $400
Credit Card: $100
Your total debt is $2,000. $2,000 divided by $6,000 equals 0.333, or a 33.3% DTI ratio.
function calculateDTIRatio() {
var grossIncome = parseFloat(document.getElementById("grossIncome").value) || 0;
var rent = parseFloat(document.getElementById("rentMortgage").value) || 0;
var car = parseFloat(document.getElementById("carLoans").value) || 0;
var student = parseFloat(document.getElementById("studentLoans").value) || 0;
var credit = parseFloat(document.getElementById("creditCards").value) || 0;
var other = parseFloat(document.getElementById("otherDebts").value) || 0;
var resultBox = document.getElementById("dtiResult");
var percentDisplay = document.getElementById("dtiPercentValue");
var adviceBox = document.getElementById("dtiAdvice");
if (grossIncome <= 0) {
alert("Please enter a valid gross monthly income greater than zero.");
return;
}
var totalDebt = rent + car + student + credit + other;
var dti = (totalDebt / grossIncome) * 100;
var dtiFixed = dti.toFixed(1);
percentDisplay.innerHTML = dtiFixed + "%";
resultBox.style.display = "block";
// Remove old classes
resultBox.classList.remove("status-good", "status-fair", "status-bad");
if (dti <= 36) {
resultBox.classList.add("status-good");
adviceBox.innerHTML = "Excellent! Your DTI is in the ideal range for most lenders.";
} else if (dti > 36 && dti <= 43) {
resultBox.classList.add("status-fair");
adviceBox.innerHTML = "Good. You are within the manageable range, but watch for rising costs.";
} else if (dti > 43 && dti <= 50) {
resultBox.classList.add("status-bad");
adviceBox.innerHTML = "High. You may find it difficult to qualify for new loans.";
} else {
resultBox.classList.add("status-bad");
adviceBox.innerHTML = "Very High. Your debt load is significantly high relative to your income.";
}
// Smooth scroll to result
resultBox.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}