Enter your monthly income and debt obligations below.
$
$
$
$
$
$
Total Monthly Debt:$0.00
0%
A lower percentage indicates a healthier financial balance.
function calculateDTI() {
// 1. Get input values
var grossIncome = parseFloat(document.getElementById('monthlyGrossIncome').value);
var rentMortgage = parseFloat(document.getElementById('monthlyRentMortgage').value) || 0;
var carLoan = parseFloat(document.getElementById('monthlyCarLoan').value) || 0;
var studentLoan = parseFloat(document.getElementById('monthlyStudentLoan').value) || 0;
var creditCard = parseFloat(document.getElementById('monthlyCreditCard').value) || 0;
var otherDebt = parseFloat(document.getElementById('otherMonthlyDebt').value) || 0;
// 2. Validate Income
if (!grossIncome || grossIncome <= 0) {
alert("Please enter a valid Gross Monthly Income greater than zero.");
return;
}
// 3. Calculate Total Debt
var totalDebt = rentMortgage + carLoan + studentLoan + creditCard + otherDebt;
// 4. Calculate DTI Ratio
var dtiRatio = (totalDebt / grossIncome) * 100;
// 5. Determine Health Status
var statusBox = document.getElementById('dtiStatus');
var statusText = "";
var statusColor = "";
var bgColor = "";
if (dtiRatio 35 && dtiRatio 43 && dtiRatio <= 50) {
statusText = "High: You may face difficulties getting approved.";
bgColor = "#e67e22"; // Darker Orange
} else {
statusText = "Critical: You should prioritize paying down debt.";
bgColor = "#c0392b"; // Red
}
// 6. Display Results
document.getElementById('displayTotalDebt').innerHTML = "$" + totalDebt.toFixed(2) + "";
document.getElementById('displayDTI').innerText = dtiRatio.toFixed(1) + "%";
statusBox.innerText = statusText;
statusBox.style.backgroundColor = bgColor;
document.getElementById('resultsArea').style.display = "block";
}
What is 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. It is expressed as a percentage and is one of the primary metrics lenders use to determine your ability to manage monthly payments and repay debts.
While your credit score shows your history of paying debts, your DTI calculates your capacity to take on new debt. A low DTI demonstrates a good balance between debt and income.
Why Your DTI Matters for Mortgages
If you are planning to buy a home, your DTI is arguably as important as your credit score. Mortgage lenders, such as those offering FHA or Conventional loans, have strict DTI limits:
36% or less: Considered ideal. You likely qualify for the best interest rates.
37% to 43%: The "manageable" zone. You can likely get approved for a Qualified Mortgage, but you may need to provide extra documentation.
44% and above: Lenders may view you as a high-risk borrower. Some FHA loans allow up to 50% or more with compensating factors, but options are limited.
What Debts Are Included in DTI?
When calculating your DTI, not every monthly expense is counted. Lenders generally focus on debts found on your credit report.
Included:
Rent or future mortgage payments (including taxes and insurance).
Auto loans and leases.
Student loans.
Minimum credit card payments.
Personal loans and alimony/child support.
Excluded:
Utility bills (electricity, water, internet).
Groceries and entertainment.
Health insurance premiums (if deducted from paycheck).
Transportation costs (gas, insurance).
Front-End vs. Back-End Ratio
Lenders often look at two different types of DTI ratios:
Front-End Ratio: This only calculates your housing expenses (mortgage, HOA, property tax) divided by your income. Lenders prefer this to be under 28%.
Back-End Ratio: This includes housing expenses plus all other consumer debts (credit cards, cars, etc.). This is the number calculated by the tool above and is generally capped at 43% for conventional loans.
How to Lower Your DTI Ratio
If your calculation shows a percentage higher than 43%, consider these strategies before applying for a major loan:
Pay off small balances: Eliminate credit card balances completely to remove the minimum monthly payment from the equation.
Increase Income: Taking on a side hustle or asking for a raise increases the denominator in the formula, lowering the percentage.
Refinance Loans: Extending the term of a car loan or student loan can lower the monthly obligation, thereby improving your DTI (though you may pay more interest over time).
Avoid New Debt: Do not open new credit lines or finance large purchases prior to a mortgage application.