.dti-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
}
.dti-flex-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
}
.dti-col {
flex: 1 1 300px;
}
.dti-input-group {
margin-bottom: 15px;
}
.dti-input-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
color: #333;
}
.dti-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
font-size: 16px;
}
.dti-input-group .helper-text {
font-size: 12px;
color: #666;
margin-top: 4px;
}
.dti-btn {
background-color: #2c3e50;
color: #ffffff;
border: none;
padding: 15px 30px;
font-size: 18px;
cursor: pointer;
border-radius: 4px;
width: 100%;
transition: background-color 0.3s;
margin-top: 10px;
}
.dti-btn:hover {
background-color: #34495e;
}
.dti-results {
margin-top: 30px;
padding: 20px;
background-color: #ffffff;
border-radius: 6px;
border-left: 5px solid #2c3e50;
display: none; /* Hidden by default */
box-shadow: 0 2px 5px rgba(0,0,0,0.05);
}
.dti-result-header {
font-size: 24px;
font-weight: bold;
margin-bottom: 10px;
color: #2c3e50;
}
.dti-verdict {
font-weight: bold;
padding: 10px;
border-radius: 4px;
margin-top: 10px;
display: inline-block;
}
.dti-verdict.good {
background-color: #d4edda;
color: #155724;
}
.dti-verdict.warning {
background-color: #fff3cd;
color: #856404;
}
.dti-verdict.danger {
background-color: #f8d7da;
color: #721c24;
}
.dti-breakdown {
margin-top: 15px;
font-size: 14px;
color: #555;
}
/* Article Styling */
.dti-article {
max-width: 800px;
margin: 40px auto;
font-family: inherit;
line-height: 1.6;
color: #333;
}
.dti-article h2 {
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
margin-top: 30px;
}
.dti-article h3 {
color: #34495e;
margin-top: 25px;
}
.dti-article ul {
margin-bottom: 20px;
}
.dti-article p {
margin-bottom: 15px;
}
.dti-highlight {
background-color: #f0f4f8;
padding: 15px;
border-left: 4px solid #3498db;
margin: 20px 0;
}
function calculateDTI() {
// 1. Get Inputs
var incomeInput = document.getElementById('dti_gross_income').value;
var housingInput = document.getElementById('dti_housing').value;
var carsInput = document.getElementById('dti_cars').value;
var loansInput = document.getElementById('dti_loans').value;
var cardsInput = document.getElementById('dti_cards').value;
var otherInput = document.getElementById('dti_other').value;
// 2. Parse values (Handle empty strings as 0)
var income = parseFloat(incomeInput) || 0;
var housing = parseFloat(housingInput) || 0;
var cars = parseFloat(carsInput) || 0;
var loans = parseFloat(loansInput) || 0;
var cards = parseFloat(cardsInput) || 0;
var other = parseFloat(otherInput) || 0;
// 3. Validation
if (income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than 0.");
return;
}
// 4. Calculate Total Debt
var totalDebt = housing + cars + loans + cards + other;
// 5. Calculate DTI Ratio
var dtiRatio = (totalDebt / income) * 100;
// 6. Round to 2 decimals
dtiRatio = Math.round(dtiRatio * 100) / 100;
// 7. Determine Verdict
var verdictMsg = "";
var verdictClass = "";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio <= 50) {
verdictMsg = "High Risk. You may find it difficult to get approved for a qualified mortgage.";
verdictClass = "danger";
} else {
verdictMsg = "Critical. Your debt load is very high compared to your income. Lenders will likely decline new credit.";
verdictClass = "danger";
}
// 8. Update DOM
var resultArea = document.getElementById('dti_result_area');
var percentageDisplay = document.getElementById('dti_percentage');
var verdictDisplay = document.getElementById('dti_verdict_msg');
var displayIncome = document.getElementById('display_income');
var displayDebt = document.getElementById('display_debt');
var displayRemaining = document.getElementById('display_remaining');
percentageDisplay.innerHTML = dtiRatio + "%";
verdictDisplay.innerHTML = verdictMsg;
verdictDisplay.className = "dti-verdict " + verdictClass;
// Format currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
displayIncome.innerHTML = formatter.format(income);
displayDebt.innerHTML = formatter.format(totalDebt);
displayRemaining.innerHTML = formatter.format(income – totalDebt);
// Show results
resultArea.style.display = "block";
}
Understanding Your Debt-to-Income (DTI) Ratio
Whether you are applying for a mortgage, a car loan, or a personal line of credit, lenders look at one number more closely than almost any other: your Debt-to-Income (DTI) Ratio. This percentage helps financial institutions measure your ability to manage your monthly payments and repay debts.
Definition: Your DTI ratio is the percentage of your gross monthly income that goes toward paying debts.
How is DTI Calculated?
The math behind DTI is straightforward but strict. Lenders look at your "back-end" ratio, which includes all major monthly debts.
The formula is:
(Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
What Counts as "Debt"?
When using the calculator above, you should include recurring monthly obligations, such as:
- Housing: Rent or monthly mortgage principal, interest, taxes, and insurance (PITI).
- Auto Loans: Monthly lease or loan payments.
- Student Loans: Required monthly payments (even if deferred, lenders may estimate 1%).
- Credit Cards: The minimum monthly payment due (not the total balance).
- Alimony/Child Support: Court-ordered payments.
Note: Generally, expenses like groceries, utilities, and entertainment are NOT included in the DTI calculation.
What is a Good DTI Ratio?
Different lenders have different thresholds, but general guidelines adhere to the "28/36 rule" or the "43% limit" for Qualified Mortgages.
35% or Lower: Excellent
If your DTI is 35% or lower, you are in a strong position. You likely have plenty of disposable income relative to your debts, making you an attractive candidate for the best interest rates.
36% to 43%: Acceptable
This is the standard range for many borrowers. While you will likely get approved for a mortgage, lenders may scrutinize your application more closely or require higher credit scores to compensate.
44% to 49%: High Risk
Getting a conventional loan becomes difficult in this range. You may be limited to FHA loans, which have more lenient DTI requirements (sometimes up to 50% or 57% with compensating factors), but these often come with mortgage insurance premiums.
50% or Higher: Critical
With half your gross income going to debt, you have very little flexibility for emergencies. Most lenders will decline a mortgage application at this level.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios:
- Front-End Ratio (Housing Ratio): This only calculates your projected housing costs divided by your income. Lenders prefer this to be under 28%.
- Back-End Ratio (Total Debt): This includes housing plus all other debts (cars, cards, loans). This is the number calculated by the tool above, and lenders generally prefer this under 36% (though up to 43% is common).
How to Lower Your DTI
If your calculation shows a number higher than 43%, consider these strategies before applying for a loan:
- Increase Income: Pick up a side hustle, ask for a raise, or include a co-borrower's income on the application.
- Pay Off Small Debts: The "Snowball Method" works well here. Paying off a small credit card balance eliminates that minimum monthly payment entirely, instantly dropping your DTI.
- Refinance Loans: Extending the term of a car loan or student loan can lower the monthly payment (though you may pay more interest over time).
- Avoid New Debt: Do not open new credit cards or buy furniture on credit while preparing for a mortgage application.
Frequently Asked Questions
Does DTI affect my credit score?
No. Credit bureaus do not know your income, so DTI is not a factor in your FICO score. However, high credit card utilization (a separate metric) does hurt your score.
Can I get a mortgage with a 50% DTI?
It is difficult but possible. FHA loans and some VA loans allow higher DTI ratios if you have significant cash reserves or a high credit score.