function calculateDTIByRole() {
// 1. Retrieve Input Values
var grossIncomeInput = document.getElementById('dtiGrossIncome');
var mortgageInput = document.getElementById('dtiMortgageRent');
var autoLoanInput = document.getElementById('dtiAutoLoans');
var studentLoanInput = document.getElementById('dtiStudentLoans');
var creditCardInput = document.getElementById('dtiCreditCards');
var otherDebtInput = document.getElementById('dtiOtherDebt');
var resultDiv = document.getElementById('dtiResult');
// 2. Parse values to floats, defaulting empty fields to 0 for debts
var grossIncome = parseFloat(grossIncomeInput.value);
var mortgage = parseFloat(mortgageInput.value) || 0;
var autoLoan = parseFloat(autoLoanInput.value) || 0;
var studentLoan = parseFloat(studentLoanInput.value) || 0;
var creditCard = parseFloat(creditCardInput.value) || 0;
var otherDebt = parseFloat(otherDebtInput.value) || 0;
// 3. Input Validation
resultDiv.style.display = 'block'; // Show result container
if (isNaN(grossIncome) || grossIncome <= 0) {
resultDiv.innerHTML = 'Error: Please enter a valid Gross Monthly Income greater than zero.';
return;
}
if (grossIncome < 0 || mortgage < 0 || autoLoan < 0 || studentLoan < 0 || creditCard < 0 || otherDebt < 0) {
resultDiv.innerHTML = 'Error: Please enter positive values for all fields.';
return;
}
// 4. Core Calculation Logic
var totalMonthlyDebt = mortgage + autoLoan + studentLoan + creditCard + otherDebt;
var dtiRatioDecimal = totalMonthlyDebt / grossIncome;
var dtiRatioPercent = dtiRatioDecimal * 100;
// 5. Determine Status and Color based on standard lending guidelines
var statusText = "";
var statusColor = "";
if (dtiRatioPercent = 36 && dtiRatioPercent 43 && dtiRatioPercent <= 50) {
statusText = "High. You may find it difficult to qualify for a mortgage.";
statusColor = "#fd7e14"; // Orange
} else {
statusText = "Very High. Lenders generally consider this high risk.";
statusColor = "#dc3545"; // Red
}
// 6. Display Results
resultDiv.innerHTML = `
Calculation Results:
Total Monthly Debt Payments: $${totalMonthlyDebt.toFixed(2)}
Your Debt-to-Income Ratio is: ${dtiRatioPercent.toFixed(1)}%Interpretation: ${statusText}
`;
}
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 is calculated by dividing your total recurring monthly debt payments by your gross monthly income (your income before taxes and deductions), expressed as a percentage. For example, if your gross monthly income is $5,000 and your total monthly debt obligations (rent, car payment, student loans, minimum credit card payments) equal $2,000, your DTI ratio is 40%.
Lenders rely heavily on this number when deciding whether to approve you for a mortgage, car loan, or personal line of credit. A lower ratio signals to lenders that you have a good balance between debt and income, making you a lower-risk borrower. Conversely, a high DTI suggests you may be overextended, increasing the risk of default.
What is a Good DTI Ratio?
While specific requirements vary by lender and loan type, general guidelines exist to help you understand where you stand:
35% or less: This is generally considered excellent. Lenders view borrowers in this range as having manageable debt levels and disposable income.
36% to 43%: This range is often acceptable for many types of financing, including qualified mortgages. However, lenders may scrutinize your application more closely or require higher credit scores. 43% is typically the highest DTI ratio a borrower can have and still get a Qualified Mortgage.
44% to 50%: Ratios in this range are considered high risk. While some specialized lenders may still work with you, you will likely face higher interest rates or stricter terms. It can be difficult to secure significant financing.
Over 50%: With more than half your pre-tax income going to debt, most traditional lenders will decline new loan applications. Borrowers in this category should focus on debt reduction strategies.
Using the calculator above can help you determine your current standing and plan for future financial goals like buying a home.