Debt-to-Income (DTI) Ratio Calculator
.dti-calculator-widget {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 20px;
border: 1px solid #e0e0e0;
border-radius: 8px;
background-color: #f9f9f9;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.dti-calculator-widget h2, .dti-calculator-widget h3 {
color: #333;
margin-top: 0;
}
.dti-form-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
margin-bottom: 20px;
}
.dti-input-group {
display: flex;
flex-direction: column;
}
.dti-input-group label {
font-size: 14px;
font-weight: 600;
margin-bottom: 5px;
color: #555;
}
.dti-input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.dti-input-group input:focus {
border-color: #0073aa;
outline: none;
}
.dti-full-width {
grid-column: span 2;
}
.dti-btn {
background-color: #0073aa;
color: white;
border: none;
padding: 12px 24px;
font-size: 16px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.2s;
}
.dti-btn:hover {
background-color: #005177;
}
#dti-result-container {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border-radius: 6px;
border-left: 5px solid #0073aa;
display: none;
}
.dti-result-value {
font-size: 32px;
font-weight: 700;
color: #0073aa;
}
.dti-result-status {
font-size: 18px;
font-weight: 600;
margin-top: 5px;
}
.status-good { color: #28a745; }
.status-warning { color: #ffc107; }
.status-danger { color: #dc3545; }
.dti-article {
max-width: 800px;
margin: 40px auto;
font-family: Georgia, 'Times New Roman', Times, serif;
line-height: 1.6;
color: #333;
}
.dti-article h2 {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
margin-top: 30px;
}
.dti-article p {
margin-bottom: 15px;
font-size: 18px;
}
.dti-article ul {
margin-bottom: 20px;
}
.dti-article li {
margin-bottom: 8px;
font-size: 17px;
}
@media (max-width: 600px) {
.dti-form-grid {
grid-template-columns: 1fr;
}
.dti-full-width {
grid-column: span 1;
}
}
function calculateDTI() {
// 1. Get input values strictly using getElementById
var grossIncomeInput = document.getElementById('dti-gross-income');
var mortgageInput = document.getElementById('dti-mortgage-rent');
var autoLoanInput = document.getElementById('dti-auto-loans');
var studentLoanInput = document.getElementById('dti-student-loans');
var creditCardInput = document.getElementById('dti-credit-cards');
var otherDebtInput = document.getElementById('dti-other-debt');
// 2. Parse float values, handle empty inputs as 0
var income = parseFloat(grossIncomeInput.value) || 0;
var mortgage = parseFloat(mortgageInput.value) || 0;
var auto = parseFloat(autoLoanInput.value) || 0;
var student = parseFloat(studentLoanInput.value) || 0;
var cards = parseFloat(creditCardInput.value) || 0;
var other = parseFloat(otherDebtInput.value) || 0;
// 3. Validation: Income must be greater than 0 to divide
if (income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than $0.");
return;
}
// 4. Calculate Total Monthly Debt
var totalDebt = mortgage + auto + student + cards + other;
// 5. Calculate DTI Ratio
var dtiRatio = (totalDebt / income) * 100;
// 6. Round to 2 decimal places
dtiRatio = Math.round(dtiRatio * 100) / 100;
// 7. Determine Status Message and Styling
var statusMessage = "";
var explanation = "";
var statusClass = "";
var statusColor = "";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio <= 50) {
statusMessage = "High – Difficult to Borrow";
explanation = "Lenders may hesitate to approve loans. Consider reducing debt.";
statusClass = "status-danger";
statusColor = "#dc3545";
} else {
statusMessage = "Critical – Excessive Debt";
explanation = "Your debt obligations are very high compared to your income. Urgent action recommended.";
statusClass = "status-danger";
statusColor = "#dc3545";
}
// 8. Update DOM elements
var resultContainer = document.getElementById('dti-result-container');
var totalDebtDisplay = document.getElementById('dti-total-debt');
var percentResult = document.getElementById('dti-percent-result');
var statusDisplay = document.getElementById('dti-status-message');
var explainDisplay = document.getElementById('dti-explanation');
resultContainer.style.display = "block";
resultContainer.style.borderLeftColor = statusColor;
totalDebtDisplay.innerText = "$" + totalDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
percentResult.innerText = dtiRatio + "%";
percentResult.style.color = statusColor;
statusDisplay.innerText = statusMessage;
statusDisplay.className = "dti-result-status " + statusClass;
explainDisplay.innerText = explanation;
}
Understanding Your Debt-to-Income (DTI) Ratio
The Debt-to-Income (DTI) ratio is one of the most critical metrics used by mortgage lenders, banks, and financial institutions to assess your borrowing capability. Unlike your credit score, which measures your credit history, the DTI ratio measures your capacity to repay a new loan based on your current income and existing debt obligations.
How DTI is Calculated
The calculation is relatively straightforward but relies on accuracy. It essentially answers the question: "What percentage of your gross monthly income goes toward paying debts?"
The formula is:
(Total Monthly Debt Payments / Gross Monthly Income) × 100 = DTI %
Note: Gross income refers to your income before taxes and deductions are taken out. Monthly debt payments typically include rent/mortgage, student loans, auto loans, minimum credit card payments, and court-ordered payments like alimony or child support.
What is a Good DTI Ratio?
While requirements vary by lender and loan type (e.g., FHA vs. Conventional), here are general guidelines:
- 35% or lower: Considered excellent. You have plenty of disposable income and are viewed as a safe borrower.
- 36% to 43%: This is the typical "backend" limit for many qualified mortgages. You are eligible for loans, but lenders may scrutinize your application more closely.
- 44% to 50%: You are in a high-risk category. While some FHA loans allow ratios up to 50% with compensating factors, securing a conventional loan may be difficult.
- Above 50%: It is very difficult to obtain new financing. Focusing on debt repayment or income generation is recommended before applying for credit.
Front-End vs. Back-End DTI
Lenders often look at two types of DTI ratios:
- Front-End Ratio: Only includes your projected housing costs (mortgage principal, interest, taxes, insurance, and HOA fees) divided by gross income. Ideally, this should be under 28%.
- Back-End Ratio: Includes housing costs plus all other monthly debt payments. This is the number calculated by the tool above and is usually capped at 43% for conventional loans.
How to Lower Your DTI
If your ratio is higher than desired, you have two primary levers to pull: increase income or decrease debt.
- Pay off high-payment debts: Focus on loans with high monthly payments rather than just high balances. Eliminating a $300/month car payment impacts your DTI more than paying down a $5,000 credit card balance with a $50 minimum payment.
- Refinance or Consolidate: If you have high-interest debt, refinancing to a lower rate or longer term can reduce monthly obligations, instantly improving your DTI.
- Increase Income: Documentable side income, raises, or co-borrowers can increase the denominator in the equation, lowering the overall percentage.