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 how much you owe each month to how much you earn. Before approving a mortgage, auto loan, or personal line of credit, financial institutions want to know if you have enough income cushion to handle new debt.
There are generally two types of DTI ratios lenders look at:
Front-End Ratio: The percentage of your gross monthly income that goes toward housing costs (rent or mortgage principal, interest, taxes, and insurance).
Back-End Ratio: The percentage of your gross monthly income that goes toward all recurring monthly debt payments, including housing, credit cards, car loans, and student loans. This calculator focuses on the back-end ratio, which is usually given more weight.
What is a Good DTI Ratio?
While requirements vary by lender and loan type, here are general guidelines:
35% or less: Lenders view this as ideal. It shows you have manageable debt and disposable income.
36% to 43%: This range is often acceptable for many mortgages, but you may face slightly higher interest rates or stricter requirements.
44% to 49%: You are entering a high-risk zone. Approval for standard loans becomes difficult without compensating factors like a high down payment or excellent credit score.
50% or higher: It is very difficult to qualify for most mortgage loans. It indicates that half your pre-tax income is already committed to debt.
Use the calculator below to determine your current back-end DTI ratio based on your gross monthly income and debt obligations.
Debt-to-Income (DTI) Calculator
Monthly Debt Obligations
Total Monthly Debt:$0.00
Your DTI Ratio:0.00%
function calculateDTI() {
var grossIncomeInput = document.getElementById('dti_gross_income').value;
var mortgageInput = document.getElementById('dti_mortgage_rent').value;
var autoInput = document.getElementById('dti_auto_loans').value;
var cardsInput = document.getElementById('dti_credit_cards').value;
var studentInput = document.getElementById('dti_student_loans').value;
var otherInput = document.getElementById('dti_other_debt').value;
var grossIncome = parseFloat(grossIncomeInput);
if (isNaN(grossIncome) || grossIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// Use || 0 to handle empty inputs returning NaN, defaulting them to zero.
var mortgage = parseFloat(mortgageInput) || 0;
var auto = parseFloat(autoInput) || 0;
var cards = parseFloat(cardsInput) || 0;
var student = parseFloat(studentInput) || 0;
var other = parseFloat(otherInput) || 0;
var totalMonthlyDebt = mortgage + auto + cards + student + other;
var dtiRatio = (totalMonthlyDebt / grossIncome) * 100;
document.getElementById('dti_total_debt_display').innerHTML = "$" + totalMonthlyDebt.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
document.getElementById('dti_ratio_display').innerHTML = dtiRatio.toFixed(2) + "%";
var statusElement = document.getElementById('dti_status_message');
var statusText = "";
var statusColor = "";
var statusBg = "";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio < 50) {
statusText = "High Risk: Approval may be difficult; consider lowering debt.";
statusColor = "#721c24";
statusBg = "#f8d7da";
} else {
statusText = "Critical Zone: It is highly unlikely to qualify for standard loans.";
statusColor = "#fff";
statusBg = "#dc3545";
}
statusElement.innerHTML = statusText;
statusElement.style.color = statusColor;
statusElement.style.backgroundColor = statusBg;
document.getElementById('dti_result_container').style.display = "block";
}