Determine your borrowing power and financial health instantly.
Income (Monthly)
Debt Obligations (Monthly Payments)
Your Debt-to-Income Ratio is:
0%
Processing…
Total Monthly Income: $0
Total Monthly Debt: $0
Available Income: $0
What is Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your creditworthiness. It represents the percentage of your gross monthly income that goes toward paying your monthly debt obligations. Unlike your credit score, which measures your history of paying debts, DTI measures your capacity to repay new debt.
Why DTI Matters for Mortgages
When applying for a mortgage, lenders want to ensure you don't become "house poor." A lower DTI indicates that you have a good balance between debt and income.
Conventional Loans: typically require a DTI of 45% or lower, though some allow up to 50% with strong cash reserves.
FHA Loans: generally allow for higher ratios, sometimes up to 57%, making them a popular choice for first-time buyers with higher debt loads.
VA Loans: do not have a hard DTI cap, but 41% is the benchmark often used for analysis.
Interpreting Your Results
Understanding where your ratio falls is the first step toward financial health:
35% or Less: Excellent
You have a manageable level of debt relative to your income. Lenders view you as a low-risk borrower, and you likely have disposable income for savings and investments.
36% to 49%: Adequate
You are eligible for most loans, but lenders may scrutinize your application more closely. You should focus on paying down high-interest debt like credit cards to move into the "Excellent" tier.
50% or Higher: Critical
At this level, more than half of your gross income goes to debt. You may struggle to get approved for a mortgage or auto loan. This level of debt indicates financial stress and limited ability to handle emergency expenses.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios calculated by mortgage underwriters:
Front-End Ratio: This only calculates your housing expenses (mortgage principal, interest, taxes, insurance, and HOA fees) divided by your gross income. The ideal limit is usually 28%.
Back-End Ratio: This includes housing expenses plus all other recurring debt (cars, student loans, credit cards). This is the number calculated by the tool above and is the more important figure for final loan approval.
How to Lower Your DTI
If your ratio is too high, consider these strategies before applying for a loan:
Increase Income: Taking on a side gig, asking for a raise, or including a co-borrower on the application can increase the denominator of the calculation.
Snowball Debt Payments: Focus on eliminating the debt with the highest monthly payment relative to the balance, or pay off small balances completely to remove that monthly obligation.
Avoid New Debt: Do not open new credit cards or finance furniture/cars while preparing for a mortgage application.
function calculateDTI() {
// 1. Get Income Values
var grossIncome = parseFloat(document.getElementById('grossIncome').value) || 0;
var otherIncome = parseFloat(document.getElementById('otherIncome').value) || 0;
var totalIncome = grossIncome + otherIncome;
// 2. Get Debt Values
var housing = parseFloat(document.getElementById('rentMortgage').value) || 0;
var cars = parseFloat(document.getElementById('autoLoans').value) || 0;
var students = parseFloat(document.getElementById('studentLoans').value) || 0;
var cards = parseFloat(document.getElementById('creditCards').value) || 0;
var loans = parseFloat(document.getElementById('personalLoans').value) || 0;
var support = parseFloat(document.getElementById('alimony').value) || 0;
var totalDebt = housing + cars + students + cards + loans + support;
// 3. Validation
if (totalIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// 4. Calculate Ratio
var dtiDecimal = totalDebt / totalIncome;
var dtiPercent = (dtiDecimal * 100).toFixed(1);
// 5. Determine Status and Colors
var statusText = "";
var statusClass = "";
var resultBox = document.getElementById('dtiStatusBox');
// Remove old classes
resultBox.classList.remove('status-green', 'status-yellow', 'status-red');
if (dtiPercent <= 35) {
statusText = "Excellent Health";
statusClass = "status-green";
} else if (dtiPercent <= 49) {
statusText = "Manageable Risk";
statusClass = "status-yellow";
} else {
statusText = "High Risk";
statusClass = "status-red";
}
// 6. Update DOM
document.getElementById('dtiPercentage').innerText = dtiPercent + "%";
document.getElementById('dtiStatusBox').innerText = statusText;
document.getElementById('dtiStatusBox').classList.add(statusClass);
// Update breakdown numbers with currency formatting
document.getElementById('displayIncome').innerText = totalIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayDebt').innerText = totalDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var balance = totalIncome – totalDebt;
document.getElementById('displayBalance').innerText = balance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show result container
document.getElementById('resultContainer').style.display = 'block';
}