#dti-calculator-wrapper h2 { color: #1a365d; margin-top: 0; font-size: 28px; border-bottom: 2px solid #f0f4f8; padding-bottom: 10px; }
#dti-calculator-wrapper .input-group { margin-bottom: 20px; }
#dti-calculator-wrapper label { display: block; font-weight: 600; margin-bottom: 8px; color: #4a5568; font-size: 15px; }
#dti-calculator-wrapper input[type="number"] { width: 100%; padding: 12px; border: 2px solid #e2e8f0; border-radius: 8px; font-size: 16px; box-sizing: border-box; transition: border-color 0.2s; }
#dti-calculator-wrapper input[type="number"]:focus { border-color: #3182ce; outline: none; }
#dti-calculator-wrapper .calc-btn { background-color: #3182ce; color: white; border: none; padding: 15px 25px; font-size: 18px; font-weight: bold; border-radius: 8px; cursor: pointer; width: 100%; transition: background-color 0.2s; margin-top: 10px; }
#dti-calculator-wrapper .calc-btn:hover { background-color: #2b6cb0; }
#dti-calculator-wrapper #dti-result-area { margin-top: 25px; padding: 20px; border-radius: 8px; display: none; text-align: center; }
#dti-calculator-wrapper .result-value { font-size: 36px; font-weight: 800; margin: 10px 0; }
#dti-calculator-wrapper .result-label { font-size: 18px; color: #4a5568; }
#dti-calculator-wrapper .section-title { font-size: 18px; font-weight: 700; color: #2d3748; margin: 25px 0 15px 0; border-left: 4px solid #3182ce; padding-left: 10px; }
#dti-calculator-wrapper .grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; }
@media (max-width: 600px) { #dti-calculator-wrapper .grid { grid-template-columns: 1fr; } }
function calculateDTIRatio() {
var grossIncome = parseFloat(document.getElementById('grossIncome').value) || 0;
var rent = parseFloat(document.getElementById('rentMortgage').value) || 0;
var car = parseFloat(document.getElementById('carPayment').value) || 0;
var student = parseFloat(document.getElementById('studentLoans').value) || 0;
var cards = parseFloat(document.getElementById('creditCards').value) || 0;
var other = parseFloat(document.getElementById('otherDebts').value) || 0;
var alimony = parseFloat(document.getElementById('childSupport').value) || 0;
var resultArea = document.getElementById('dti-result-area');
var percentageText = document.getElementById('dti-percentage');
var statusText = document.getElementById('dti-status');
var descText = document.getElementById('dti-description');
if (grossIncome <= 0) {
alert("Please enter a valid gross monthly income.");
return;
}
var totalMonthlyDebt = rent + car + student + cards + other + alimony;
var dtiRatio = (totalMonthlyDebt / grossIncome) * 100;
var roundedDTI = dtiRatio.toFixed(1);
resultArea.style.display = 'block';
percentageText.innerHTML = roundedDTI + "%";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio <= 50) {
resultArea.style.backgroundColor = '#fff5f5';
statusText.style.color = '#c53030';
statusText.innerHTML = "High (Caution)";
descText.innerHTML = "A DTI above 43% is considered high. Most mortgage lenders require a DTI below 43% to qualify for a Qualified Mortgage.";
} else {
resultArea.style.backgroundColor = '#fff5f5';
statusText.style.color = '#9b2c2c';
statusText.innerHTML = "Very High";
descText.innerHTML = "A DTI over 50% indicates that half your income goes toward debt. This significantly limits your ability to borrow more money.";
}
}
Debt-to-Income (DTI) Ratio Calculator
Calculate your Debt-to-Income ratio to understand your financial health and see what lenders look for when you apply for a mortgage or loan.
Monthly Gross Income
Pre-tax income from all sources.
Monthly Debt Payments
Your Debt-to-Income Ratio is:
0%
What is the Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal finance measure that compares your total monthly debt payments to your monthly gross income. This percentage is one of the primary tools used by lenders (especially mortgage lenders) to measure your ability to manage monthly payments and repay borrowed money.
The DTI Formula
The math behind the DTI ratio is straightforward:
(Total Monthly Debt Payments / Gross Monthly Income) x 100 = DTI %
Why Does DTI Matter?
- Mortgage Qualification: For most conventional mortgages, a DTI of 43% is the maximum allowed to qualify for a "Qualified Mortgage."
- Interest Rates: Borrowers with lower DTI ratios are often rewarded with lower interest rates because they are viewed as lower risk.
- Financial Flexibility: A lower DTI means you have more "disposable income" available for savings, investments, or emergencies.
Practical Example
Let's look at a realistic scenario:
- Gross Monthly Income: $6,000
- Monthly Expenses:
- Mortgage: $1,500
- Car Loan: $400
- Student Loan: $300
- Credit Card Minimum: $100
- Total Monthly Debt: $2,300
- Calculation: ($2,300 / $6,000) = 0.3833
- DTI Ratio: 38.3%
In this example, the borrower falls into the "Good" category. They would likely qualify for most home loans, though they should be cautious about taking on significant new debt.
Tips to Lower Your DTI Ratio
- Increase your Gross Income: While not always easy, raises, bonuses, or side hustles increase the denominator of the equation.
- Pay Down Principal: Focus on high-balance loans. Paying off a car loan or credit card entirely removes that monthly payment from your DTI calculation.
- Avoid New Debt: If you are planning to buy a home soon, avoid financing new furniture or a new car, as this will immediately increase your DTI.
- Refinance Existing Debt: If you can lower your monthly payments through refinancing (even if it extends the term), your DTI ratio will improve.