.dti-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #fff;
padding: 20px;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.dti-calc-container {
display: flex;
flex-wrap: wrap;
gap: 30px;
margin-bottom: 40px;
}
.dti-input-section {
flex: 1;
min-width: 300px;
}
.dti-result-section {
flex: 1;
min-width: 300px;
background-color: #f8f9fa;
padding: 25px;
border-radius: 8px;
display: flex;
flex-direction: column;
justify-content: center;
border-left: 5px solid #007bff;
}
.dti-input-group {
margin-bottom: 15px;
}
.dti-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
font-size: 14px;
}
.dti-input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.3s;
}
.dti-input-group input:focus {
border-color: #007bff;
outline: none;
}
.dti-calc-btn {
width: 100%;
padding: 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.dti-calc-btn:hover {
background-color: #0056b3;
}
.dti-result-value {
font-size: 42px;
font-weight: 800;
color: #2c3e50;
margin: 10px 0;
}
.dti-result-label {
font-size: 14px;
color: #666;
text-transform: uppercase;
letter-spacing: 1px;
}
.dti-status-message {
margin-top: 15px;
padding: 10px;
border-radius: 4px;
font-weight: 600;
text-align: center;
}
.dti-status-good { background-color: #d4edda; color: #155724; }
.dti-status-warning { background-color: #fff3cd; color: #856404; }
.dti-status-danger { background-color: #f8d7da; color: #721c24; }
.dti-article-content {
margin-top: 40px;
line-height: 1.6;
color: #444;
}
.dti-article-content h2 {
color: #2c3e50;
margin-top: 30px;
font-size: 24px;
}
.dti-article-content h3 {
color: #34495e;
font-size: 20px;
margin-top: 25px;
}
.dti-article-content p {
margin-bottom: 15px;
}
.dti-article-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.dti-article-content li {
margin-bottom: 8px;
}
.dti-example-box {
background: #f1f1f1;
padding: 15px;
border-left: 4px solid #555;
margin: 20px 0;
}
function calculateDTI() {
// Get inputs
var income = parseFloat(document.getElementById('dti_income').value);
var housing = parseFloat(document.getElementById('dti_housing').value) || 0;
var car = parseFloat(document.getElementById('dti_car').value) || 0;
var cards = parseFloat(document.getElementById('dti_cards').value) || 0;
var loans = parseFloat(document.getElementById('dti_loans').value) || 0;
// Validation
if (!income || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// Calculations
var totalDebt = housing + car + cards + loans;
var dtiRatio = (totalDebt / income) * 100;
var remaining = income – totalDebt;
// Display formatting
document.getElementById('dti_result_display').innerHTML = dtiRatio.toFixed(2) + '%';
document.getElementById('dti_total_debt').innerHTML = '$' + totalDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('dti_remaining').innerHTML = '$' + remaining.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Status Logic
var statusDiv = document.getElementById('dti_status');
statusDiv.style.display = 'block';
statusDiv.className = 'dti-status-message'; // Reset classes
if (dtiRatio 36 && dtiRatio <= 43) {
statusDiv.innerHTML = "Manageable: You may qualify, but terms might vary.";
statusDiv.classList.add('dti-status-warning');
} else {
statusDiv.innerHTML = "High Risk: Lenders may deny mortgage applications.";
statusDiv.classList.add('dti-status-danger');
}
}
What is a Debt-to-Income (DTI) Ratio?
Your Debt-to-Income (DTI) ratio is a personal finance measure that compares an individual's monthly debt payment to their monthly gross income. Lenders use this ratio to determine your ability to manage monthly payments and repay debts. It is a critical factor when applying for mortgages, auto loans, or personal lines of credit.
Why Does Your DTI Ratio Matter?
A low DTI ratio demonstrates a good balance between debt and income. Conversely, a high DTI ratio can signal that an individual has too much debt for the amount of income earned. Generally, lenders prefer a DTI ratio lower than 36%, with no more than 28% going towards mortgage servicing (housing expenses).
- Under 36%: Ideally, your debt is manageable, and you likely qualify for lower interest rates.
- 36% – 43%: You may still qualify for loans, but lenders might require additional documentation or offer higher rates.
- Over 43%: This is often the cutoff for "Qualified Mortgages." Borrowers with ratios above this limit may find it difficult to secure financing.
How to Calculate Your DTI Ratio
The formula for calculating your DTI is relatively straightforward. It involves summing your recurring monthly debt obligations and dividing that total by your gross monthly income (income before taxes and deductions).
DTI Formula:
(Total Monthly Debt Payments ÷ Gross Monthly Income) × 100 = DTI %
Example Calculation
Let's say you want to determine your financial health before buying a home. Here is a realistic scenario:
- Gross Monthly Income: $6,000
- Rent/Projected Mortgage: $1,500
- Car Payment: $400
- Student Loan: $300
- Credit Card Minimum: $200
Step 1: Calculate Total Monthly Debt
$1,500 + $400 + $300 + $200 = $2,400
Step 2: Divide by Income
$2,400 ÷ $6,000 = 0.40
Step 3: Convert to Percentage
0.40 × 100 = 40%
In this example, a 40% DTI is on the higher end of the "manageable" spectrum. To improve your odds of approval, you might pay off the credit card debt or increase your income before applying.
Strategies to Lower Your DTI
If your ratio is higher than desired, consider these steps to improve your borrowing power:
- Increase Monthly Payments: Paying more than the minimum on credit cards reduces your principal faster, lowering future monthly minimums.
- Avoid New Debt: Do not open new lines of credit or make large purchases on credit before applying for a mortgage.
- Refinance Loans: If interest rates have dropped, refinancing a car loan or student loan can lower the monthly obligation, improving your ratio.