Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders evaluate when you apply for a mortgage, personal loan, or credit line. It represents the percentage of your gross monthly income that goes towards paying debts. Use this specific DTI calculator to determine your current standing and qualification chances.
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Your DTI Ratio:
0.00%
Breakdown:
Total Monthly Debt: $0.00
Total Monthly Income: $0.00
What is a Good Debt-to-Income Ratio?
Lenders use the Debt-to-Income ratio to assess your ability to manage monthly payments and repay debts. A lower DTI ratio demonstrates a good balance between debt and income.
35% or less: Considered excellent. You are viewed as a safe borrower and likely qualify for the best interest rates.
36% to 43%: This is the typical range lenders accept. Specifically, 43% is often the highest DTI ratio a borrower can have and still get a Qualified Mortgage.
44% to 49%: Considered high risk. You may struggle to find a lender, or you may be required to have significant cash reserves or a co-signer.
50% or higher: Indicates financial distress. Lenders will likely deny new credit applications, and aggressive debt repayment is recommended.
Front-End vs. Back-End Ratio
There are technically two types of DTI ratios used in mortgage lending:
Front-End Ratio: This only calculates the percentage of income that goes toward housing costs (rent, mortgage principal, interest, taxes, and insurance). Lenders typically prefer this to be under 28%.
Back-End Ratio: This calculator computes your Back-End Ratio, which includes housing costs plus all other monthly debt obligations like car loans, student loans, and credit cards. This gives a complete picture of your financial health.
How to Lower Your DTI Ratio
If your calculation shows a percentage higher than 43%, consider these steps before applying for a major loan:
The most effective method is to pay off "snowball" debts—small balances on credit cards or loans that can be eliminated quickly to remove that monthly payment entirely. Alternatively, increasing your gross income through a raise, side hustle, or co-borrower can mathematically lower the ratio even if debt levels remain constant.
function calculateDTI() {
// 1. Get input elements by ID (Exact match)
var incomeInput = document.getElementById("monthlyGrossIncome");
var rentInput = document.getElementById("monthlyRentMortgage");
var carInput = document.getElementById("monthlyCarLoan");
var studentInput = document.getElementById("monthlyStudentLoan");
var ccInput = document.getElementById("monthlyCreditCards");
var otherInput = document.getElementById("monthlyOtherDebt");
// 2. Parse values (Handle NaN/Empty)
var income = parseFloat(incomeInput.value);
var rent = parseFloat(rentInput.value) || 0;
var car = parseFloat(carInput.value) || 0;
var student = parseFloat(studentInput.value) || 0;
var cc = parseFloat(ccInput.value) || 0;
var other = parseFloat(otherInput.value) || 0;
// 3. Validation
if (isNaN(income) || income <= 0) {
alert("Please enter a valid Gross Monthly Income greater than 0.");
return;
}
// 4. Calculate Total Debt
var totalDebt = rent + car + student + cc + other;
// 5. Calculate DTI Ratio
// Formula: (Total Monthly Debt / Gross Monthly Income) * 100
var dtiRatio = (totalDebt / income) * 100;
// 6. Format Result
var dtiFixed = dtiRatio.toFixed(2);
// 7. Determine Status and Color
var statusBadge = document.getElementById("dtiStatusBadge");
var explanation = document.getElementById("dtiExplanation");
var resultContainer = document.getElementById("dtiResultContainer");
var statusText = "";
var statusClass = "";
var explainText = "";
// Reset classes
statusBadge.className = "dti-badge";
if (dtiRatio <= 35) {
statusText = "Excellent";
statusClass = "status-good";
explainText = "Your debt load is very manageable. Lenders view you as a low-risk borrower.";
} else if (dtiRatio <= 43) {
statusText = "Manageable";
statusClass = "status-warning";
explainText = "You are within the acceptable range for most mortgages, though lower is better.";
} else {
statusText = "High Risk";
statusClass = "status-bad";
explainText = "Your debt-to-income ratio is above the 43% threshold commonly used for Qualified Mortgages. You may face difficulty qualifying for new credit.";
}
// 8. Update DOM
resultContainer.style.display = "block";
statusBadge.textContent = statusText;
statusBadge.classList.add(statusClass);
document.getElementById("dtiPercentDisplay").textContent = dtiFixed + "%";
document.getElementById("totalDebtDisplay").textContent = "$" + totalDebt.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalIncomeDisplay").textContent = "$" + income.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
explanation.textContent = explainText;
// Smooth scroll to result
resultContainer.scrollIntoView({ behavior: 'smooth' });
}