Determine the percentage of your gross monthly income that goes toward debt payments.
Monthly Debt Payments
Results:
Total Monthly Debt: $0.00
Your DTI Ratio: 0.00%
function calculateMyDTI() {
// 1. Get Input Values. Using || 0 to handle empty inputs so they treat as zero debt.
var incomeInput = document.getElementById('dti-gross-income').value;
var income = parseFloat(incomeInput);
var mortgage = parseFloat(document.getElementById('dti-mortgage-rent').value) || 0;
var auto = parseFloat(document.getElementById('dti-auto-loans').value) || 0;
var student = parseFloat(document.getElementById('dti-student-loans').value) || 0;
var cards = parseFloat(document.getElementById('dti-credit-cards').value) || 0;
var other = parseFloat(document.getElementById('dti-other-debt').value) || 0;
// Get result elements
var resultBox = document.getElementById('dti-result-output');
var totalDebtDisplay = document.getElementById('total-debt-display');
var dtiPercentDisplay = document.getElementById('dti-percent-display');
var statusMessage = document.getElementById('dti-status-message');
// 2. Validation
if (isNaN(income) || income <= 0) {
resultBox.style.display = "block";
resultBox.style.backgroundColor = "#fee";
resultBox.style.borderColor = "#fcc";
statusMessage.innerHTML = "Please enter a valid Gross Monthly Income greater than zero.";
statusMessage.style.backgroundColor = "transparent";
statusMessage.style.color = "#c00";
totalDebtDisplay.innerHTML = "–";
dtiPercentDisplay.innerHTML = "–";
return; // Exit function if income is invalid
}
// 3. Calculation Logic
var totalMonthlyDebt = mortgage + auto + student + cards + other;
var dtiRatioDecimal = totalMonthlyDebt / income;
var dtiRatioPercent = dtiRatioDecimal * 100;
// 4. Display Results
resultBox.style.display = "block";
// Reset styles in case of previous error
resultBox.style.backgroundColor = "#eef";
resultBox.style.borderColor = "#ccd";
totalDebtDisplay.innerHTML = totalMonthlyDebt.toFixed(2);
dtiPercentDisplay.innerHTML = dtiRatioPercent.toFixed(1);
// Determine status message based on DTI ranges
statusMessage.style.backgroundColor = "#eee"; // default gray
statusMessage.style.color = "#333"; // default text
if (dtiRatioPercent 35 && dtiRatioPercent 43 && dtiRatioPercent <= 50) {
statusMessage.innerHTML = "Status: High Risk. Many lenders may deny loan applications, especially mortgages, at this level.";
statusMessage.style.backgroundColor = "#f2dede";
statusMessage.style.color = "#a94442";
} else {
statusMessage.innerHTML = "Status: Critical. Your debt level relative to income is very high. Focus heavily on debt reduction.";
statusMessage.style.backgroundColor = "#f2dede";
statusMessage.style.color = "#a94442";
}
}
Understanding Your Debt-to-Income (DTI) 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 how much you owe each month to how much you earn. A lower DTI ratio demonstrates a good balance between debt and income, making you a more attractive borrower.
Why DTI Matters
Lenders, particularly mortgage lenders, use DTI as a primary indicator of financial health. If your DTI is too high, it suggests you might struggle to handle additional debt payments. For example, to qualify for most conventional mortgages, lenders typically prefer a back-end DTI ratio (including housing costs and other debts) to be no higher than 43%, although some loan programs allow for higher ratios with compensating factors.
How DTI Is Calculated
The calculation is straightforward: divide your total recurring monthly debt payments by your gross monthly income (your income before taxes and deductions). Then, multiply the result by 100 to get a percentage.
The Formula: (Total Monthly Debt Payments / Gross Monthly Income) x 100 = DTI Ratio %
An Example Calculation
Let's say your gross monthly income is $6,000. Your monthly debts include:
In this scenario, your DTI ratio is 43.3%, which is generally considered the upper limit for conventional financing approval.
Interpreting Your Score
35% or less (Healthy): Your debt is manageable relative to your income. You are in a strong position to apply for new credit.
36% to 43% (Manageable): You have a moderate level of debt. Lenders will likely approve you, but they may scrutinize your application more closely.
44% or higher (High Risk): Your debt obligations may be too high for many lenders. You may face higher interest rates or denial for significant loans like mortgages until you reduce your debt load or increase your income.
Note: This calculator provides an estimate for educational purposes. Different lenders may calculate DTI slightly differently based on specific loan guidelines.