Calculate your DTI ratio to understand your borrowing power and mortgage eligibility.
Monthly Debt Payments
Your Debt-to-Income Ratio:
0.00%
Breakdown:
Total Monthly Debt: $0.00
Gross Monthly Income: $0.00
Understanding Your Debt-to-Income Ratio
Your Debt-to-Income (DTI) ratio is a critical financial metric used by lenders to assess your ability to manage monthly payments and repay debts. It compares your total monthly debt payments to your gross monthly income (income before taxes and deductions).
Why DTI Matters for Mortgages
When you apply for a mortgage, lenders use your DTI to decide how much home you can afford. A lower DTI indicates a good balance between debt and income, while a higher DTI signals potential financial stress.
Interpreting Your Results
35% or less (Good): Lenders view you as a safe borrower. You likely have money left over after paying bills.
36% to 43% (Manageable): You are typically eligible for most loans, including Qualified Mortgages, though terms might vary.
44% to 50% (Concerning): You may struggle to find lenders. FHA loans might still be an option, but you are considered higher risk.
Above 50% (High Risk): Most lenders will decline mortgage applications. It is recommended to reduce debt before applying for new credit.
How to Lower Your DTI
To improve your ratio, you can either increase your income or reduce your monthly debt. Strategies include paying off small balances completely (like credit cards) to eliminate the monthly payment obligation, avoiding new debt, and refinancing high-interest loans.
function calculateDTI() {
// Retrieve values
var grossIncome = parseFloat(document.getElementById("grossIncome").value) || 0;
var rentMortgage = parseFloat(document.getElementById("rentMortgage").value) || 0;
var carLoans = parseFloat(document.getElementById("carLoans").value) || 0;
var studentLoans = parseFloat(document.getElementById("studentLoans").value) || 0;
var creditCards = parseFloat(document.getElementById("creditCards").value) || 0;
var otherDebts = parseFloat(document.getElementById("otherDebts").value) || 0;
// Validation
if (grossIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// Calculation
var totalMonthlyDebt = rentMortgage + carLoans + studentLoans + creditCards + otherDebts;
var dtiRatio = (totalMonthlyDebt / grossIncome) * 100;
// Display Preparation
var resultBox = document.getElementById("dti-result-box");
var dtiDisplay = document.getElementById("dti-percentage");
var summaryDisplay = document.getElementById("dti-summary");
var debtDisplay = document.getElementById("total-debt-display");
var incomeDisplay = document.getElementById("total-income-display");
resultBox.style.display = "block";
dtiDisplay.innerHTML = dtiRatio.toFixed(2) + "%";
debtDisplay.innerHTML = "$" + totalMonthlyDebt.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
incomeDisplay.innerHTML = "$" + grossIncome.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Status Logic
var statusMessage = "";
var statusColorClass = "";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio <= 50) {
statusMessage = "Concerning – You may face higher interest rates or rejection.";
statusColorClass = "status-orange";
} else {
statusMessage = "Critical – Difficulty securing new credit is likely.";
statusColorClass = "status-red";
}
summaryDisplay.className = "dti-status " + statusColorClass;
summaryDisplay.innerHTML = statusMessage;
}