/* Calculator Styles */
.dti-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.dti-row {
display: flex;
flex-wrap: wrap;
margin-bottom: 20px;
justify-content: space-between;
}
.dti-col {
flex: 1;
min-width: 280px;
padding: 0 10px;
}
.dti-label {
display: block;
font-weight: 600;
margin-bottom: 8px;
color: #333;
}
.dti-input-group {
position: relative;
}
.dti-currency-symbol {
position: absolute;
left: 12px;
top: 50%;
transform: translateY(-50%);
color: #666;
}
.dti-input {
width: 100%;
padding: 12px 12px 12px 30px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.3s;
}
.dti-input:focus {
border-color: #2c3e50;
outline: none;
}
.dti-btn {
width: 100%;
padding: 15px;
background-color: #2c3e50;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.dti-btn:hover {
background-color: #34495e;
}
.dti-results {
margin-top: 30px;
padding: 20px;
background-color: #f8f9fa;
border-radius: 6px;
border-left: 5px solid #2c3e50;
display: none;
}
.dti-result-header {
font-size: 1.2em;
margin-bottom: 10px;
color: #555;
}
.dti-big-number {
font-size: 3em;
font-weight: 800;
color: #2c3e50;
line-height: 1;
}
.dti-status {
margin-top: 10px;
font-weight: 600;
padding: 5px 10px;
border-radius: 4px;
display: inline-block;
}
.status-good { background-color: #d4edda; color: #155724; }
.status-warning { background-color: #fff3cd; color: #856404; }
.status-danger { background-color: #f8d7da; color: #721c24; }
/* Article Styles */
.dti-article {
max-width: 800px;
margin: 40px auto;
font-family: inherit;
line-height: 1.6;
color: #333;
}
.dti-article h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.dti-article p {
margin-bottom: 15px;
}
.dti-article ul {
margin-bottom: 15px;
padding-left: 20px;
}
.dti-article li {
margin-bottom: 8px;
}
@media (max-width: 600px) {
.dti-col { min-width: 100%; padding: 0; margin-bottom: 15px; }
}
What is a Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your financial health and ability to repay borrowed money. It is a percentage that compares your total monthly debt payments to your gross monthly income (your income before taxes and deductions).
Simply put, it tells lenders how much of your income is already spoken for. A lower DTI ratio suggests that you have a good balance between debt and income, making you a more attractive candidate for mortgages, auto loans, and personal lines of credit.
How to Calculate Your DTI Ratio
The formula for calculating DTI is straightforward but requires accuracy. This calculator performs the math for you, but understanding the logic helps you manage your finances better:
- Step 1: Add up all your recurring monthly debt payments (Rent/Mortgage, HOA fees, student loans, auto loans, credit card minimums, alimony/child support).
- Step 2: Determine your gross monthly income (wages, salary, tips, bonuses, pension, investment income).
- Step 3: Divide your Total Monthly Debt by your Gross Monthly Income.
- Step 4: Multiply the result by 100 to get the percentage.
Note: Generally, monthly expenses like groceries, utilities, and gas are NOT included in the DTI calculation.
What is a Good DTI Ratio for a Mortgage?
While requirements vary by lender and loan type, here are the general benchmarks:
- 35% or Less (Excellent): You are viewed as a low-risk borrower. You likely have plenty of disposable income to handle new debt.
- 36% to 43% (Manageable): This is often the "sweet spot" limit for many lenders. Specifically, 43% is typically the highest ratio a borrower can have and still get a Qualified Mortgage.
- 44% to 49% (High Risk): You may still find lenders willing to work with you, but you might face higher interest rates or be required to have significant cash reserves.
- 50% or Higher (Critical): At this level, your options for borrowing are severely limited. Lenders worry that an unexpected expense could cause you to default.
Front-End vs. Back-End Ratio
This calculator primarily displays your Back-End Ratio, which includes all debts. However, lenders also look at the Front-End Ratio (also known as the housing ratio). This calculates only your projected housing costs (mortgage principal, interest, taxes, insurance, and HOA) against your income. Ideally, your Front-End ratio should be under 28%.
How to Lower Your DTI
If your ratio is higher than you'd like, consider these strategies before applying for a major loan:
- Pay off high-interest credit cards: Eliminating a monthly minimum payment reduces your debt load immediately.
- Increase your income: Taking on a side gig, freelance work, or asking for a raise increases the denominator in the calculation, lowering the overall percentage.
- Avoid new debt: Do not open new credit lines or finance large purchases while preparing for a mortgage application.
function calculateDTI() {
// 1. Get Input Values
var incomeInput = document.getElementById('grossIncome');
var rentInput = document.getElementById('rentMortgage');
var carInput = document.getElementById('carLoans');
var cardInput = document.getElementById('creditCards');
var studentInput = document.getElementById('studentLoans');
// 2. Parse Values to Floats, default to 0 if empty/NaN
var grossIncome = parseFloat(incomeInput.value);
var rent = parseFloat(rentInput.value) || 0;
var cars = parseFloat(carInput.value) || 0;
var cards = parseFloat(cardInput.value) || 0;
var loans = parseFloat(studentInput.value) || 0;
// 3. Validation
if (isNaN(grossIncome) || grossIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than 0.");
return;
}
// 4. Calculate Total Debt
var totalDebt = rent + cars + cards + loans;
// 5. Calculate Ratio
var dtiRatio = (totalDebt / grossIncome) * 100;
// 6. Round to 2 decimal places
dtiRatio = Math.round(dtiRatio * 100) / 100;
// 7. Update UI
var resultDiv = document.getElementById('dtiResult');
var percentageText = document.getElementById('dtiPercentage');
var statusBox = document.getElementById('dtiStatusBox');
var explanation = document.getElementById('dtiExplanation');
percentageText.innerHTML = dtiRatio + "%";
resultDiv.style.display = 'block';
// 8. Determine Status and Colors
statusBox.className = 'dti-status'; // Reset classes
if (dtiRatio = 36 && dtiRatio 43 && dtiRatio < 50) {
statusBox.innerHTML = "High Risk";
statusBox.classList.add('status-warning'); // keeping yellow/orange context
statusBox.style.backgroundColor = "#ffeeba";
statusBox.style.color = "#856404";
explanation.innerHTML = "Your DTI is above the standard 43% cutoff. You may face difficulties getting approved for standard loans without compensating factors.";
} else {
statusBox.innerHTML = "Critical";
statusBox.classList.add('status-danger');
explanation.innerHTML = "Your debt load is very high relative to your income. Lenders may decline applications until debt is reduced or income increases.";
}
// Scroll to result on mobile
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}