Determine your eligibility for mortgages and loans by calculating your debt load relative to your income.
$
Include salary, bonuses, alimony, etc.
$
Include P&I, taxes, and insurance.
Other Monthly Debt Obligations:
$
$
$
$
Your Debt-to-Income Ratio
–%
Total Monthly Debt:$0
What is 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 repay a new loan or mortgage.
Understanding DTI Thresholds
35% or less: Generally considered excellent. You likely have money left over after paying bills and are viewed as a safe borrower.
36% to 43%: This is typically manageable, but you may find it harder to qualify for the best interest rates. 43% is often the highest DTI a borrower can have and still get a Qualified Mortgage.
44% to 49%: Lenders may scrutinize your application closely. You might need to pay off some debt to qualify for a standard mortgage.
50% or higher: You may struggle to find a loan. This level of debt relative to income is considered high risk.
Example Calculation
If your gross monthly income is $6,000, and your total monthly debt payments (rent/mortgage, car loan, credit cards) equal $2,400, your DTI is calculated as follows:
($2,400 / $6,000) x 100 = 40%
In this scenario, a 40% DTI falls into the "manageable" category, allowing you to qualify for most loans, though perhaps not at the lowest possible tier of interest rates.
Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Lending criteria vary by institution.
function calculateDTI() {
// 1. Get input values
var grossIncome = parseFloat(document.getElementById('grossIncome').value) || 0;
var monthlyHousing = parseFloat(document.getElementById('monthlyHousing').value) || 0;
var carLoans = parseFloat(document.getElementById('carLoans').value) || 0;
var studentLoans = parseFloat(document.getElementById('studentLoans').value) || 0;
var creditCards = parseFloat(document.getElementById('creditCards').value) || 0;
var otherDebts = parseFloat(document.getElementById('otherDebts').value) || 0;
// 2. Validate Income
if (grossIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// 3. Calculate Total Debt
var totalDebt = monthlyHousing + carLoans + studentLoans + creditCards + otherDebts;
// 4. Calculate Ratio
var dtiRatio = (totalDebt / grossIncome) * 100;
// 5. Update UI Result
var resultContainer = document.getElementById('dti-result-container');
var percentageDisplay = document.getElementById('dti-percentage');
var statusBadge = document.getElementById('dti-status-badge');
var explanationText = document.getElementById('dti-explanation');
var totalDebtDisplay = document.getElementById('total-debt-display');
resultContainer.style.display = "block";
percentageDisplay.innerHTML = dtiRatio.toFixed(2) + "%";
totalDebtDisplay.innerHTML = "$" + totalDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// 6. Determine Status Logic
if (dtiRatio 35 && dtiRatio <= 43) {
statusBadge.innerHTML = "Manageable";
statusBadge.className = "result-status status-manageable";
explanationText.innerHTML = "Your DTI is within the acceptable range for most lenders, though you are approaching the limit for Qualified Mortgages (43%).";
resultContainer.style.borderLeftColor = "#ffc107";
} else {
statusBadge.innerHTML = "High Risk";
statusBadge.className = "result-status status-danger";
explanationText.innerHTML = "Your debt-to-income ratio is high. Lenders may view this as risky. Consider paying down debt or increasing income before applying for major loans.";
resultContainer.style.borderLeftColor = "#dc3545";
}
// Scroll to result for better UX on mobile
resultContainer.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}