Debt-to-Income Ratio Calculator
function calculateDTI() {
var monthlyDebtPayments = parseFloat(document.getElementById("monthlyDebtPayments").value);
var monthlyGrossIncome = parseFloat(document.getElementById("monthlyGrossIncome").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(monthlyDebtPayments) || isNaN(monthlyGrossIncome)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (monthlyGrossIncome <= 0) {
resultDiv.innerHTML = "Monthly gross income must be greater than zero.";
return;
}
var dtiRatio = (monthlyDebtPayments / monthlyGrossIncome) * 100;
var interpretation = "";
if (dtiRatio <= 36) {
interpretation = "Excellent. This DTI ratio is considered very healthy and indicates a strong ability to manage debt.";
} else if (dtiRatio <= 43) {
interpretation = "Good. This DTI ratio is generally considered acceptable, especially for mortgage qualification.";
} else if (dtiRatio <= 50) {
interpretation = "Fair. While manageable, this DTI ratio might make it harder to qualify for new loans and could indicate financial strain.";
} else {
interpretation = "High. This DTI ratio is considered high and may significantly impact your ability to qualify for new credit and indicates potential financial risk.";
}
resultDiv.innerHTML = "
Your Debt-to-Income Ratio: " + dtiRatio.toFixed(2) + "%
" +
"" + interpretation + "" +
"
What is Debt-to-Income Ratio?" +
"The 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 DTI to assess your ability to manage monthly payments and repay debts. A lower DTI generally indicates a better financial standing and a lower risk for lenders. " +
"It's a crucial factor in qualifying for loans like mortgages, auto loans, and personal loans. Typically, lenders prefer a DTI ratio of 43% or lower for mortgages." +
"
What's included in Monthly Debt Payments?" +
"This usually includes minimum payments on credit cards, student loans, auto loans, personal loans, alimony, child support, and your potential new mortgage payment (if applying for one)." +
"
What's included in Monthly Gross Income?" +
"This is your income before taxes and other deductions. It includes your salary, wages, bonuses, commissions, alimony, child support, and any other regular income sources.";
}
.calculator-container {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);
}
.calculator-container h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.calculator-inputs {
display: grid;
gap: 15px;
margin-bottom: 20px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1em;
}
.calculator-container button {
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 1.1em;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 20px;
padding: 15px;
background-color: #f9f9f9;
border: 1px solid #eee;
border-radius: 4px;
}
.calculator-result h3 {
color: #007bff;
margin-top: 0;
}
.calculator-result p {
color: #444;
line-height: 1.6;
}
.calculator-result strong {
color: #333;
}