.dti-input-group { margin-bottom: 20px; }
.dti-label { display: block; font-weight: 600; margin-bottom: 8px; color: #2c3e50; }
.dti-input { width: 100%; padding: 12px; border: 2px solid #ddd; border-radius: 6px; box-sizing: border-box; font-size: 16px; transition: border-color 0.3s; }
.dti-input:focus { border-color: #3498db; outline: none; }
.dti-button { background-color: #27ae60; color: white; border: none; padding: 15px 25px; border-radius: 6px; cursor: pointer; font-size: 18px; font-weight: bold; width: 100%; transition: background-color 0.3s; margin-top: 10px; }
.dti-button:hover { background-color: #219150; }
#dti-result-box { margin-top: 25px; padding: 20px; border-radius: 8px; text-align: center; display: none; }
.dti-score { font-size: 32px; font-weight: 800; color: #2c3e50; margin-bottom: 10px; }
.dti-category { font-weight: 700; text-transform: uppercase; letter-spacing: 1px; }
.dti-explanation { margin-top: 10px; font-size: 15px; }
.dti-article-section { margin-top: 40px; border-top: 1px solid #eee; pt: 30px; }
.dti-article-section h2 { color: #2c3e50; font-size: 24px; margin-top: 30px; }
.dti-article-section h3 { color: #34495e; font-size: 20px; }
.dti-table { width: 100%; border-collapse: collapse; margin: 20px 0; }
.dti-table th, .dti-table td { border: 1px solid #ddd; padding: 12px; text-align: left; }
.dti-table th { background-color: #f8f9fa; }
.highlight-green { background-color: #d4edda; color: #155724; border: 1px solid #c3e6cb; }
.highlight-yellow { background-color: #fff3cd; color: #856404; border: 1px solid #ffeeba; }
.highlight-red { background-color: #f8d7da; color: #721c24; border: 1px solid #f5c6cb; }
function calculateDTIRatio() {
var grossIncome = parseFloat(document.getElementById('grossIncome').value) || 0;
var rent = parseFloat(document.getElementById('rentMortgage').value) || 0;
var car = parseFloat(document.getElementById('carPayments').value) || 0;
var cards = parseFloat(document.getElementById('creditCards').value) || 0;
var other = parseFloat(document.getElementById('otherDebt').value) || 0;
var resultBox = document.getElementById('dti-result-box');
var displayVal = document.getElementById('dti-display-val');
var categoryLabel = document.getElementById('dti-category-label');
var adviceText = document.getElementById('dti-advice-text');
if (grossIncome <= 0) {
alert("Please enter a valid gross monthly income greater than zero.");
return;
}
var totalDebt = rent + car + cards + other;
var dtiRatio = (totalDebt / grossIncome) * 100;
var dtiFixed = dtiRatio.toFixed(1);
resultBox.style.display = "block";
displayVal.innerHTML = dtiFixed + "%";
if (dtiRatio 35 && dtiRatio <= 43) {
resultBox.className = "highlight-yellow";
categoryLabel.innerHTML = "Manageable Ratio";
adviceText.innerHTML = "Lenders may still approve you, but you are nearing the limit of what most consider acceptable for a mortgage.";
} else {
resultBox.className = "highlight-red";
categoryLabel.innerHTML = "High Risk Ratio";
adviceText.innerHTML = "A DTI above 43% makes it difficult to qualify for most mortgages. Consider paying down debt before applying for new loans.";
}
}
What is the Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal finance metric that compares the amount of debt you pay every month to your overall gross monthly income. Lenders use this number to measure your ability to manage monthly payments and repay the money you plan to borrow.
Unlike credit scores, which reflect your payment history, the DTI ratio specifically looks at your capacity to take on more financial responsibility. A lower DTI ratio indicates a healthy balance between debt and income.
How to Calculate Your DTI Ratio
The formula for DTI is straightforward: (Total Monthly Debt Payments รท Gross Monthly Income) x 100.
Example: If you pay $1,200 for your mortgage, $300 for a car loan, and $100 for credit cards, your total monthly debt is $1,600. If your gross monthly income is $5,000, your DTI is ($1,600 / $5,000) x 100 = 32%.
Why the 43% Threshold Matters
In the mortgage industry, 43% is often considered the "magic number." Most lenders prefer a DTI ratio below 36%, with no more than 28% of that debt going toward your mortgage or rent. However, 43% is generally the maximum DTI a borrower can have and still get a Qualified Mortgage.
| DTI Ratio Range |
Lender Perspective |
| 35% or Less |
Excellent: You have plenty of disposable income and are a low-risk borrower. |
| 36% to 43% |
Good/Fair: You are managing debt well, but significant new loans might be scrutinized. |
| 44% to 50% |
Concern: You may struggle with unexpected expenses. Lenders may require high credit scores or collateral. |
| Above 50% |
High Risk: More than half your income goes to debt. Financial flexibility is severely limited. |
Ways to Improve Your DTI Ratio
- Pay off small balances: Target credit cards with low balances to eliminate monthly minimum payments entirely.
- Avoid new debt: Postpone large purchases that require financing until your current DTI is lower.
- Increase gross income: Side hustles or salary increases directly lower the ratio.
- Refinance: If interest rates have dropped, refinancing a high-interest loan can lower your monthly obligation.
DTI for Different Loan Types
While the standard limit is 43%, specific loan programs have different rules:
- FHA Loans: May allow DTIs up to 50% or higher with strong credit scores and cash reserves.
- VA Loans: Technically recommends a 41% limit, but often allows higher ratios if residual income is sufficient.
- Conventional Loans: Generally stick to the 43% rule but may extend to 45% or 50% in specific automated underwriting scenarios.