Dti Calculator

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Debt-to-Income (DTI) Calculator
Calculate DTI Ratio (%)
Results:
Your Back-End DTI Ratio
0.00%

Total Monthly Debt:

Front-End DTI (Housing Only):

function calculateDTI(){var income = parseFloat(document.getElementById('gross_income').value) || 0;var housing = parseFloat(document.getElementById('mortgage_rent').value) || 0;var car = parseFloat(document.getElementById('car_loans').value) || 0;var student = parseFloat(document.getElementById('student_loans').value) || 0;var credit = parseFloat(document.getElementById('credit_cards').value) || 0;var other = parseFloat(document.getElementById('other_debt').value) || 0;if(income <= 0){alert('Please enter a valid gross monthly income.');return;}var totalDebt = housing + car + student + credit + other;var backEndDTI = (totalDebt / income) * 100;var frontEndDTI = (housing / income) * 100;document.getElementById('resultValue').innerHTML = backEndDTI.toFixed(2) + '%';document.getElementById('totalDebtVal').innerHTML = '$' + totalDebt.toLocaleString();document.getElementById('frontEndVal').innerHTML = frontEndDTI.toFixed(2) + '%';var status = "";var statusColor = "";if(backEndDTI <= 35){status = "Excellent – Ideal for most lenders";statusColor = "#28a745";}else if(backEndDTI <= 43){status = "Good – Standard for conventional loans";statusColor = "#17a2b8";}else if(backEndDTI <= 50){status = "High – May need specialized lending";statusColor = "#ffc107";}else{status = "Very High – Hard to qualify for loans";statusColor = "#dc3545";}var statusDiv = document.getElementById('healthStatus');statusDiv.innerHTML = status;statusDiv.style.color = statusColor;if(document.getElementById('steps').checked){var stepHtml = "Step 1: Sum all monthly debts:
" + housing + " (Housing) + " + (car+student+credit+other) + " (Other) = $" + totalDebt + "

Step 2: Divide by gross monthly income:
$" + totalDebt + " / $" + income + " = " + (totalDebt/income).toFixed(4) + "

Step 3: Multiply by 100 for percentage:
" + (totalDebt/income).toFixed(4) + " * 100 = " + backEndDTI.toFixed(2) + "%";document.getElementById('stepsSection').innerHTML = stepHtml;document.getElementById('stepsSection').style.display = 'block';}else{document.getElementById('stepsSection').style.display = 'none';}document.getElementById('answer').style.display = 'block';}

Calculator Use

Use this dti calculator to determine your debt-to-income ratio, a critical metric used by mortgage lenders and financial institutions to assess your creditworthiness. By entering your monthly income and recurring debt obligations, you can see how you appear to potential creditors.

Understanding your DTI helps you plan for major purchases like a home or car, ensuring you stay within healthy financial boundaries.

Gross Monthly Income
Your total income before taxes and deductions. This includes salary, bonuses, and side income.
Rent or Mortgage
Your primary monthly housing payment, including insurance and property taxes if escrowed.
Recurring Debts
Monthly obligations like car payments, student loans, and the minimum payments on credit cards.

How It Works

Lenders look at two types of DTI: Front-End and Back-End. The dti calculator focuses primarily on the Back-End ratio, which is the most comprehensive measure of your financial health. The mathematical formula is:

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

  • Total Monthly Debt: The sum of all recurring monthly payments (rent, loans, credit cards).
  • Gross Monthly Income: Your pre-tax monthly pay.
  • Front-End DTI: Only includes housing costs divided by income.
  • Back-End DTI: Includes ALL monthly debt obligations divided by income.

Calculation Example

Example: Imagine an individual with a gross monthly income of $6,000. They pay $1,500 for rent, $300 for a car loan, and $200 in student loans.

Step-by-step solution:

  1. Total Debt = $1,500 + $300 + $200 = $2,000
  2. Gross Income = $6,000
  3. Divide: $2,000 / $6,000 = 0.3333
  4. Multiply: 0.3333 x 100 = 33.33%
  5. Result = 33.33% DTI Ratio (Back-End)

Common Questions

What is a good DTI ratio for a mortgage?

Most lenders prefer a back-end DTI of 36% or less. However, many conventional loan programs allow up to 43%, and some government-backed loans (like FHA) may allow up to 50% or higher depending on credit score and cash reserves.

Does DTI include utilities or groceries?

No. The dti calculator only uses "hard" debts that appear on your credit report or fixed housing costs. Living expenses like food, utilities, car insurance, and cell phone bills are typically excluded from the DTI calculation.

How can I lower my DTI ratio?

There are only two ways to lower your DTI: increase your gross monthly income or decrease your monthly debt payments. Paying off a credit card or refinancing a high-interest loan to lower the monthly payment are common strategies.

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