.dti-calculator-container {
max-width: 700px;
margin: 20px auto;
padding: 25px;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 10px rgba(0,0,0,0.05);
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
}
.dti-calculator-header {
text-align: center;
margin-bottom: 25px;
color: #2c3e50;
}
.dti-input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.dti-input-grid {
grid-template-columns: 1fr;
}
}
.dti-input-group {
margin-bottom: 15px;
}
.dti-input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #555;
font-size: 0.95em;
}
.dti-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.dti-input-group input:focus {
border-color: #0073aa;
outline: none;
}
.dti-btn-container {
text-align: center;
margin-top: 20px;
}
.dti-calculate-btn {
background-color: #0073aa;
color: white;
border: none;
padding: 12px 30px;
font-size: 18px;
border-radius: 5px;
cursor: pointer;
transition: background-color 0.3s;
}
.dti-calculate-btn:hover {
background-color: #005177;
}
#dti-result-section {
margin-top: 30px;
padding: 20px;
border-radius: 6px;
display: none;
text-align: center;
}
.result-value {
font-size: 2.5em;
font-weight: bold;
color: #333;
margin-bottom: 10px;
}
.result-status {
font-size: 1.2em;
font-weight: 600;
margin-bottom: 10px;
text-transform: uppercase;
}
.result-explanation {
font-size: 0.95em;
color: #666;
line-height: 1.5;
}
.dti-article {
max-width: 700px;
margin: 40px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: #333;
}
.dti-article h2 {
color: #2c3e50;
border-bottom: 2px solid #0073aa;
padding-bottom: 10px;
margin-top: 30px;
}
.dti-article h3 {
color: #444;
margin-top: 25px;
}
.dti-article ul {
margin-bottom: 20px;
}
.dti-article li {
margin-bottom: 8px;
}
.dti-example-box {
background-color: #f9f9f9;
border-left: 4px solid #0073aa;
padding: 15px;
margin: 20px 0;
}
Understanding Your Debt-to-Income Ratio
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your financial health. Unlike your credit score, which measures your credit history, the DTI ratio measures your ability to manage monthly payments and repay debts. It represents the percentage of your gross monthly income that goes toward paying your recurring debts.
Why is DTI Important?
Lenders, particularly mortgage issuers, look at DTI to determine how risky it would be to lend you money. A high DTI suggests you may be over-leveraged and could struggle to take on additional debt. A low DTI indicates a healthy balance between income and debt.
- Mortgage Qualification: Most Conventional loans require a DTI of 45% or lower (sometimes up to 50% with strong reserves).
- Interest Rates: A lower DTI can sometimes help you qualify for better interest rates.
- Financial Freedom: A lower ratio means you have more disposable income for savings and investing.
How to Calculate DTI
The formula for calculating your Debt-to-Income ratio is straightforward:
DTI Formula:
(Total Monthly Debt Payments / Gross Monthly Income) × 100 = DTI %
Realistic Example
Let's look at a realistic scenario for an individual named Alex:
- Gross Monthly Income: $6,000 (before taxes)
- Rent: $1,500
- Car Loan: $400
- Student Loans: $300
- Credit Cards: $200
Alex's total monthly debt is $2,400 ($1,500 + $400 + $300 + $200).
Calculation: ($2,400 ÷ $6,000) × 100 = 40%.
Interpreting Your Results
What constitutes a "good" DTI ratio? Here is a general breakdown:
- 0% – 35% (Excellent): You have manageable debt and plenty of disposable income. Lenders view you as a very low-risk borrower.
- 36% – 43% (Good/Average): You are eligible for most loans, including a "Qualified Mortgage," though you should be careful about taking on new debt.
- 44% – 49% (Concerning): You may still find lenders, particularly for FHA loans, but your options are limited and you may face higher interest rates.
- 50% and Higher (Critical): You are considered high-risk. Most mortgage lenders will deny applications at this level. Focus on debt repayment immediately.
Front-End vs. Back-End Ratio
This calculator determines your Back-End Ratio, which includes all debts. Lenders also look at your Front-End Ratio, which only calculates housing costs (mortgage/rent, insurance, taxes) against your income. Ideally, your front-end ratio should be under 28%.
function calculateDTI() {
// 1. Get Input Values
var income = parseFloat(document.getElementById('dti_income').value);
var rent = parseFloat(document.getElementById('dti_rent').value);
var car = parseFloat(document.getElementById('dti_car').value);
var student = parseFloat(document.getElementById('dti_student').value);
var cards = parseFloat(document.getElementById('dti_cards').value);
var other = parseFloat(document.getElementById('dti_other').value);
// 2. Validate Inputs
if (isNaN(income) || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// Handle empty fields as 0
if (isNaN(rent)) rent = 0;
if (isNaN(car)) car = 0;
if (isNaN(student)) student = 0;
if (isNaN(cards)) cards = 0;
if (isNaN(other)) other = 0;
// 3. Perform Calculation
var totalDebt = rent + car + student + cards + other;
var dtiRatio = (totalDebt / income) * 100;
// 4. Determine Status
var statusText = "";
var explanation = "";
var resultBox = document.getElementById('dti-result-section');
var statusElement = document.getElementById('dti-status-text');
// Logic for colors and text
if (dtiRatio = 36 && dtiRatio 43 && dtiRatio < 50) {
resultBox.style.backgroundColor = "#fff3cd"; // Darker Orange
resultBox.style.border = "1px solid #ffeeba";
statusElement.style.color = "#856404";
statusText = "Concerning";
explanation = "You are approaching the upper limit. Obtaining a mortgage may be difficult without a co-signer or paying down debt.";
} else {
resultBox.style.backgroundColor = "#f8d7da"; // Red
resultBox.style.border = "1px solid #f5c6cb";
statusElement.style.color = "#721c24";
statusText = "Critical / High Risk";
explanation = "Your debt-to-income ratio is very high. Lenders may deny credit. Focus on aggressive debt repayment.";
}
// 5. Update UI
resultBox.style.display = "block";
statusElement.innerText = statusText;
document.getElementById('dti-percentage').innerText = dtiRatio.toFixed(2) + "%";
document.getElementById('dti-explanation').innerText = explanation;
}