Discover Loan Rate Calculator

.dti-calculator-wrapper {
font-family: ‘Segoe UI’, Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.dti-calc-header {
text-align: center;
margin-bottom: 25px;
}
.dti-calc-header h2 {
color: #2c3e50;
margin: 0;
font-size: 24px;
}
.dti-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.dti-grid {
grid-template-columns: 1fr;
}
}
.dti-input-group {
margin-bottom: 15px;
}
.dti-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #444;
font-size: 14px;
}
.dti-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.dti-input-group input:focus {
border-color: #3498db;
outline: none;
box-shadow: 0 0 5px rgba(52,152,219,0.3);
}
.dti-section-title {
grid-column: 1 / -1;
font-size: 18px;
color: #2980b9;
border-bottom: 2px solid #2980b9;
padding-bottom: 5px;
margin-top: 10px;
margin-bottom: 15px;
}
.dti-btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 10px;
}
.calculate-btn {
background-color: #27ae60;
color: white;
border: none;
padding: 12px 30px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
transition: background-color 0.3s;
font-weight: bold;
}
.calculate-btn:hover {
background-color: #219150;
}
.dti-results {
grid-column: 1 / -1;
background: #fff;
padding: 20px;
border-radius: 6px;
border: 1px solid #ddd;
margin-top: 20px;
display: none;
}
.dti-result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
border-bottom: 1px solid #eee;
padding-bottom: 5px;
}
.dti-main-result {
text-align: center;
margin-top: 15px;
padding-top: 15px;
border-top: 2px solid #eee;
}
.dti-percentage {
font-size: 42px;
font-weight: bold;
color: #2c3e50;
display: block;
margin: 10px 0;
}
.dti-status {
display: inline-block;
padding: 5px 15px;
border-radius: 15px;
font-weight: bold;
color: white;
margin-bottom: 10px;
}
.status-good { background-color: #27ae60; }
.status-manageable { background-color: #f39c12; }
.status-high { background-color: #c0392b; }
.seo-content-wrapper {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #333;
font-family: ‘Segoe UI’, Roboto, sans-serif;
}
.seo-content-wrapper h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 1px solid #eee;
padding-bottom: 10px;
}
.seo-content-wrapper p {
margin-bottom: 15px;
}
.seo-content-wrapper ul {
margin-bottom: 15px;
padding-left: 20px;
}
.seo-content-wrapper li {
margin-bottom: 8px;
}
.info-box {
background-color: #e8f6f3;
border-left: 5px solid #1abc9c;
padding: 15px;
margin: 20px 0;
}

Debt-to-Income (DTI) Ratio Calculator

Determine your borrowing power and financial health instantly.

1. Your Income

2. Your Monthly Debt Obligations

function calculateDTI() {
// 1. Get Inputs
var grossIncome = parseFloat(document.getElementById(‘monthlyGrossIncome’).value);
var rent = parseFloat(document.getElementById(‘rentMortgage’).value) || 0;
var car = parseFloat(document.getElementById(‘carLoans’).value) || 0;
var student = parseFloat(document.getElementById(‘studentLoans’).value) || 0;
var cards = parseFloat(document.getElementById(‘creditCards’).value) || 0;
var personal = parseFloat(document.getElementById(‘personalLoans’).value) || 0;
var other = parseFloat(document.getElementById(‘otherDebt’).value) || 0;
// 2. Validation
if (isNaN(grossIncome) || grossIncome <= 0) {
alert("Please enter a valid positive number for your Monthly Gross Income.");
return;
}
// 3. Calculation Logic
var totalDebt = rent + car + student + cards + personal + other;
var dtiRatio = (totalDebt / grossIncome) * 100;
// 4. Update Result Elements
document.getElementById('displayIncome').innerText = "$" + grossIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayDebt').innerText = "$" + totalDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var percentageEl = document.getElementById('resultPercentage');
percentageEl.innerText = dtiRatio.toFixed(2) + "%";
var statusEl = document.getElementById('resultStatus');
var messageEl = document.getElementById('resultMessage');
var dtiContainer = document.getElementById('dtiResults');
// 5. Interpretation Logic
if (dtiRatio 36 && dtiRatio <= 43) {
statusEl.innerText = "Manageable / Moderate Risk";
statusEl.className = "dti-status status-manageable";
messageEl.innerText = "Your DTI is acceptable for most lenders, though you may face slightly stricter scrutiny. Try to reduce debt before applying for large loans.";
percentageEl.style.color = "#f39c12";
} else {
statusEl.innerText = "High / High Risk";
statusEl.className = "dti-status status-high";
messageEl.innerText = "A DTI above 43% signals financial stress to lenders. You may have difficulty qualifying for a mortgage or other loans without paying down debt first.";
percentageEl.style.color = "#c0392b";
}
// 6. Show Results
dtiContainer.style.display = "block";
}

When applying for a mortgage, personal loan, or auto financing, your credit score isn’t the only number lenders look at. One of the most critical metrics used to assess your borrowing power is your Debt-to-Income (DTI) ratio. Use the specific calculator above to determine exactly where you stand financially.

Why is DTI important?
Your DTI ratio tells lenders what percentage of your monthly gross income goes toward paying debts. A lower ratio indicates that you have a healthy balance between debt and income, making you a less risky borrower.

How is DTI Calculated?

The math behind the Debt-to-Income ratio is relatively straightforward, yet it is a powerful indicator of financial health. The formula used in our calculator is:

DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100

Step 1: Calculate Total Monthly Debt
This includes recurring obligations such as your rent or mortgage payment, car loans, student loans, minimum credit card payments, alimony, child support, and other personal loans. It generally does not include variable expenses like groceries, utilities, or entertainment.

Step 2: Determine Gross Monthly Income
This is the amount of money you earn before taxes and deductions. It includes salary, hourly wages, bonuses, tips, and other steady sources of income.

Interpreting Your DTI Score

Once you have used the calculator above, you will receive a percentage. Here is a detailed breakdown of what that number means for your loan approval odds:

• 36% or Less (Ideal): Most lenders consider this the “gold standard.” With a DTI in this range, you have significant disposable income and are viewed as a low-risk borrower. You are likely to qualify for the best interest rates.
• 36% to 43% (Acceptable): You are still in a good position to get approved for loans, including a Qualified Mortgage. However, lenders might ask for additional documentation, and your interest rate might be slightly higher than someone in the lower bracket.
• 43% to 50% (At Risk): This is the “danger zone” for many conventional loans. While FHA loans might allow ratios up to 50% (or even higher with compensating factors), conventional lenders often cap approval at 43%. You may need a co-signer or a larger down payment.
• Above 50% (Critical): With more than half your income going to debt, borrowing becomes very difficult. Lenders worry about your ability to handle unexpected expenses. Priority should be placed on aggressive debt repayment.

Front-End vs. Back-End Ratio

In mortgage lending, you might hear about two types of DTI ratios:

• Front-End Ratio (Housing Ratio): This only calculates the percentage of income that goes toward housing costs (mortgage principal, interest, taxes, insurance, and HOA fees). Lenders typically prefer this to be under 28%.
• Back-End Ratio (Total Debt Ratio): This is the standard DTI calculated by the tool above. It includes housing costs plus all other debts. Lenders generally cap this at 43% for conventional loans.

Strategies to Lower Your DTI

If the calculator returned a high percentage, don’t panic. Here are actionable steps to improve your ratio before applying for a loan:

1. Increase Your Income: Taking on a side gig, asking for a raise, or including a spouse’s income on a joint application can increase the denominator in the formula, lowering the ratio.
2. Pay Off Small Debts: The “Snowball Method” can be effective here. Eliminate credit cards with small balances to remove those minimum monthly payments from the calculation entirely.
3. Refinance Existing Loans: If you can lower your monthly car payment or student loan payment through refinancing (extending the term or lowering the rate), your monthly debt obligation drops, improving your DTI immediately.
4. Avoid New Debt: Do not open new credit lines or make large purchases on credit in the months leading up to a mortgage application.