Determine your eligibility for mortgages and loans by calculating your DTI percentage.
1. Monthly Income
$
Include salary, bonuses, alimony, etc.
2. Monthly Debt Payments
$
$
$
$
$
Your Debt-to-Income Ratio
0%
Total Monthly Income:$0
Total Monthly Debt:$0
function calculateDTI() {
// 1. Get Input Values
var incomeInput = document.getElementById('dtiGrossIncome');
var rentInput = document.getElementById('dtiRent');
var carInput = document.getElementById('dtiCar');
var studentInput = document.getElementById('dtiStudent');
var creditInput = document.getElementById('dtiCredit');
var otherInput = document.getElementById('dtiOther');
// 2. Parse values to floats, defaulting to 0 if empty or NaN
var income = parseFloat(incomeInput.value);
var rent = parseFloat(rentInput.value) || 0;
var car = parseFloat(carInput.value) || 0;
var student = parseFloat(studentInput.value) || 0;
var credit = parseFloat(creditInput.value) || 0;
var other = parseFloat(otherInput.value) || 0;
// 3. Validation: Income is required
if (isNaN(income) || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// 4. Calculate Total Debt
var totalDebt = rent + car + student + credit + other;
// 5. Calculate DTI Ratio
var dtiRatio = (totalDebt / income) * 100;
// 6. Format Results
var resultBox = document.getElementById('dtiResult');
var percentageDisplay = document.getElementById('dtiPercentage');
var statusDisplay = document.getElementById('dtiStatus');
var feedbackDisplay = document.getElementById('dtiFeedback');
var displayIncome = document.getElementById('displayIncome');
var displayDebt = document.getElementById('displayDebt');
// Round to 2 decimals
dtiRatio = Math.round(dtiRatio * 100) / 100;
// 7. Determine Status
var statusText = "";
var statusClass = "";
var feedbackText = "";
if (dtiRatio 36 && dtiRatio <= 43) {
statusText = "Manageable / Caution";
statusClass = "status-warning";
feedbackText = "You may still qualify for many loans, but lenders might require additional scrutiny.";
} else {
statusText = "High Risk";
statusClass = "status-bad";
feedbackText = "A DTI above 43% can make it difficult to qualify for a standard mortgage. Consider paying down debt.";
}
// 8. Update DOM
percentageDisplay.innerHTML = dtiRatio + "%";
statusDisplay.innerHTML = statusText;
statusDisplay.className = "dti-result-status " + statusClass;
feedbackDisplay.innerHTML = feedbackText;
displayIncome.innerHTML = "$" + income.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
displayDebt.innerHTML = "$" + totalDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultBox.style.display = "block";
}
What is a Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal finance measure that compares the amount of debt you have to your overall income. Lenders, including mortgage issuers, use this ratio to measure your ability to manage your monthly payments and repay the money you plan to borrow.
How is DTI Calculated?
The formula for calculating your DTI is relatively simple. It involves summing your total monthly debt payments and dividing that number by your gross monthly income (your income before taxes and deductions).
The Formula: (Total Monthly Debt Payments / Gross Monthly Income) x 100 = DTI %
For example, if you pay $1,500 for your mortgage, $300 for a car loan, and $200 for student loans, your total monthly debt is $2,000. If your gross monthly income is $6,000, your DTI is 33%.
Why Your DTI Matters for Mortgages
When applying for a mortgage, your DTI is one of the most critical factors alongside your credit score. It tells the lender how much "wiggle room" you have in your budget.
Low DTI: Indicates you have plenty of income relative to your debt. This suggests you are low risk.
High DTI: Indicates a large portion of your income goes to debt repayment, increasing the risk of default if you take on more debt.
What is a "Good" DTI Ratio?
While requirements vary by lender and loan type (Conventional, FHA, VA), here are the general guidelines:
36% or less: This is considered the ideal range. Most lenders will offer the best interest rates and terms.
36% to 43%: This is often the upper limit for a "Qualified Mortgage." You can likely still get approved, but you may need a higher credit score or cash reserves.
43% to 50%: Some FHA loans allow ratios this high, but approval is difficult and often requires compensating factors.
Above 50%: It is very difficult to obtain a traditional mortgage with a DTI above 50%.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios:
Front-End Ratio: Only counts your housing costs (mortgage principal, interest, taxes, insurance, and HOA fees) divided by income. Ideally, this should be under 28%.
Back-End Ratio: Counts ALL monthly debt payments. This is the calculator provided above and is the number lenders focus on most heavily. Ideally, this should be under 36%.
How to Lower Your DTI
If your ratio is too high, you have two mathematical options to improve it:
Increase your income: Through a raise, a second job, or a co-borrower.
Decrease your debt: Pay off small balances like credit cards or car loans to eliminate the monthly payment entirely. Simply paying more than the minimum doesn't lower your DTI unless the account is paid in full or the minimum payment drops.