Determine your mortgage eligibility and financial health
Income
Pre-tax income from salary, bonuses, etc.
Monthly Debts
Your DTI Ratio is 0%
$0
Monthly Income
$0
Total Monthly Debt
$0
Remaining Income
Understanding Your Debt-to-Income Ratio
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your ability to manage monthly payments and repay debts. Unlike your credit score, which measures your credit history, your DTI measures your current financial capacity.
What constitutes a "Good" DTI Ratio?
Most lenders adhere to the "28/36 rule" or similar guidelines:
36% or less: This is the ideal range. It indicates you have manageable debt relative to your income. Lenders view you as a low-risk borrower.
37% to 43%: This is often the "cautionary" zone. You may still qualify for a mortgage, but you might be required to pay a higher interest rate or provide additional documentation. The Qualified Mortgage limit is typically capped at 43%.
44% to 50%: While FHA loans sometimes allow ratios up to 50% with compensating factors, this level of debt is considered high risk. Approval becomes difficult.
Above 50%: At this level, you are likely to be denied for most traditional loans. It indicates that more than half of your gross income goes immediately to debt service.
Front-End vs. Back-End Ratio
Lenders look at two specific calculations:
Front-End Ratio (Housing Ratio): This only calculates your proposed housing expenses (mortgage principal, interest, taxes, insurance, and HOA dues) divided by your gross income. Ideally, this should be under 28%.
Back-End Ratio (Total DTI): This is the calculation performed by the tool above. It includes your housing costs plus all other recurring monthly debts like credit cards, student loans, and car payments. Ideally, this should be under 36%.
How to Lower Your DTI
If your DTI is higher than 43%, consider these strategies before applying for a loan: pay off small debts to eliminate monthly obligations entirely (rather than just paying down balances), avoid taking on new debt, or look for ways to increase your gross monthly income through side hustles or salary negotiations.
function calculateDTI() {
// 1. Get DOM elements
var grossIncomeInput = document.getElementById("dtiGrossIncome");
var rentInput = document.getElementById("dtiRent");
var cardsInput = document.getElementById("dtiCards");
var studentInput = document.getElementById("dtiStudent");
var autoInput = document.getElementById("dtiAuto");
var otherInput = document.getElementById("dtiOther");
// Results elements
var resultsDiv = document.getElementById("dtiResults");
var mainDtiPercent = document.getElementById("mainDtiPercent");
var statusText = document.getElementById("dtiStatusText");
var totalIncomeDisplay = document.getElementById("totalIncomeDisplay");
var totalDebtDisplay = document.getElementById("totalDebtDisplay");
var disposableDisplay = document.getElementById("disposableDisplay");
// 2. Parse values, defaulting to 0 if empty or invalid
var income = parseFloat(grossIncomeInput.value) || 0;
var rent = parseFloat(rentInput.value) || 0;
var cards = parseFloat(cardsInput.value) || 0;
var student = parseFloat(studentInput.value) || 0;
var auto = parseFloat(autoInput.value) || 0;
var other = parseFloat(otherInput.value) || 0;
// 3. Validation
if (income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than 0.");
return;
}
// 4. Calculations
var totalDebt = rent + cards + student + auto + other;
var dtiRatio = (totalDebt / income) * 100;
var remainingIncome = income – totalDebt;
// 5. Update UI
resultsDiv.style.display = "block";
// Format currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0
});
totalIncomeDisplay.textContent = formatter.format(income);
totalDebtDisplay.textContent = formatter.format(totalDebt);
disposableDisplay.textContent = formatter.format(remainingIncome);
// Format Percentage
mainDtiPercent.textContent = dtiRatio.toFixed(1) + "%";
// 6. Determine Status Logic
var statusMessage = "";
var statusClass = "";
if (dtiRatio 36 && dtiRatio 43 && dtiRatio <= 50) {
statusMessage = "High Risk. You may face difficulty getting approved for standard loans without compensating factors.";
statusClass = "dti-status-bad";
resultsDiv.style.borderTopColor = "#e74c3c";
} else {
statusMessage = "Critical. Your debt-to-income ratio is significantly higher than what lenders typically accept.";
statusClass = "dti-status-bad";
resultsDiv.style.borderTopColor = "#e74c3c";
}
mainDtiPercent.className = statusClass; // Apply color to the percentage
statusText.innerHTML = statusMessage;
// Scroll to results on mobile
if(window.innerWidth < 600) {
resultsDiv.scrollIntoView({behavior: "smooth"});
}
}