.dti-calculator-wrapper {
max-width: 800px;
margin: 20px auto;
padding: 20px;
border: 1px solid #eee;
border-radius: 8px;
background-color: #f9f9f9;
font-family: sans-serif;
}
.dti-calc-form {
display: flex;
flex-wrap: wrap;
gap: 20px;
}
.dti-input-group {
flex: 1 1 45%;
min-width: 250px;
margin-bottom: 15px;
}
.dti-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
}
.dti-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box; /* Important for padding not to break width */
}
.dti-calc-btn {
width: 100%;
padding: 15px;
background-color: #0056b3;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
}
.dti-calc-btn:hover {
background-color: #004494;
}
#dti-result-container {
margin-top: 25px;
padding: 20px;
border-radius: 8px;
background-color: #e9ecef;
display: none; /* Hidden by default */
}
.dti-summary-item {
margin-bottom: 10px;
font-size: 16px;
}
.dti-final-score {
font-size: 32px;
font-weight: bold;
margin: 15px 0;
text-align: center;
}
.dti-interpretation {
text-align: center;
font-weight: 600;
padding: 10px;
border-radius: 4px;
}
Debt-to-Income (DTI) Ratio Calculator
Enter your monthly gross income and all recurring monthly debt payments below to calculate your current DTI ratio.
function calculateDTIRatio() {
// Fetch input values using var. Use parseFloat and handle empty/NaN inputs by defaulting to 0.
var grossIncome = parseFloat(document.getElementById("dtiGrossIncome").value) || 0;
var mortgageRent = parseFloat(document.getElementById("dtiMortgageRent").value) || 0;
var carLoans = parseFloat(document.getElementById("dtiCarLoans").value) || 0;
var creditCards = parseFloat(document.getElementById("dtiCreditCards").value) || 0;
var studentLoans = parseFloat(document.getElementById("dtiStudentLoans").value) || 0;
var otherDebt = parseFloat(document.getElementById("dtiOtherDebt").value) || 0;
var resultContainer = document.getElementById("dti-result-container");
// Validation: Income must be greater than zero to avoid division by zero errors.
if (grossIncome <= 0) {
resultContainer.style.display = "block";
resultContainer.style.backgroundColor = "#f8d7da";
resultContainer.style.color = "#721c24";
resultContainer.innerHTML = "
Error: Please enter a valid Gross Monthly Income greater than zero.";
return;
}
// Calculate Total Monthly Debt
var totalMonthlyDebt = mortgageRent + carLoans + creditCards + studentLoans + otherDebt;
// Calculate DTI Ratio
var dtiRatioDecimal = totalMonthlyDebt / grossIncome;
var dtiRatioPercentage = (dtiRatioDecimal * 100).toFixed(2); // Round to 2 decimal places
// Determine Interpretation and styling based on common lending standards
var interpretationText = "";
var statusColor = "";
var bgColor = "";
if (dtiRatioPercentage = 36 && dtiRatioPercentage 43 && dtiRatioPercentage <= 50) {
interpretationText = "Concerned. Some lenders may decline mortgage applications at this level.";
statusColor = "#856404";
bgColor = "#ffeeba";
} else {
interpretationText = "High Risk. Lenders may hesitate to extend new credit until debt is reduced.";
statusColor = "#721c24";
bgColor = "#f8d7da";
}
// Construct the output HTML
var outputHtml = "
Calculation Results
";
outputHtml += "
Total Monthly Debt Payments: $" + totalMonthlyDebt.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "
";
outputHtml += "
Gross Monthly Income: $" + grossIncome.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "
";
outputHtml += "
";
outputHtml += "
" + dtiRatioPercentage + "% DTI Ratio
";
outputHtml += "
" + interpretationText + "
";
// Display results
resultContainer.style.backgroundColor = "#e9ecef"; // Reset background color in case of previous error
resultContainer.style.color = "#333";
resultContainer.style.display = "block";
resultContainer.innerHTML = outputHtml;
}
Understanding Your Debt-to-Income (DTI) Ratio
Your Debt-to-Income (DTI) ratio is one of the most critical metrics lenders use to assess your financial health and ability to repay borrowed money. It is expressed as a percentage and represents the portion of your gross monthly income that goes toward paying recurring debts.
Unlike your credit score, which looks at your payment history, your DTI ratio looks at your current financial capacity. A lower DTI generally indicates to lenders that you have a good balance between debt and income, making you a less risky borrower.
How DTI Is Calculated
The formula for calculating your DTI is relatively straight forward. It is your total recurring monthly debt payments divided by your gross monthly income (your income before taxes and deductions).
DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100
When calculating your total monthly debt, you should include:
- Monthly housing costs (rent or mortgage principal, interest, taxes, and insurance)
- Minimum monthly credit card payments
- Auto loan or lease payments
- Student loan payments
- Other obligations like alimony or child support
You generally do not need to include monthly utilities, grocery costs, or health insurance premiums in this calculation.
What Is a Good DTI Ratio?
While different lenders have different criteria depending on the type of loan (e.g., mortgage vs. personal loan) and your credit score, there are general benchmarks accepted in the financial industry.
- 35% or Lower: This is considered excellent. Most lenders view this range favorably, indicating you have manageable debt levels and disposable income.
- 36% to 43%: This range is often considered acceptable for many types of mortgages. You will likely qualify for loans, though perhaps not at the absolute lowest interest rates if you are near the top of this range.
- 44% to 50%: This is the danger zone for conventional mortgage lending. While some specialized loan programs exist, many traditional lenders will decline applications if the DTI is above 43% or 45%.
- Above 50%: With more than half your gross income going to debt, lenders view you as a high-risk borrower. Obtaining significant new credit, such as a home loan, will be difficult without reducing your debt load or increasing your income.
Using the calculator above regularly can help you monitor your financial health as you work toward paying down balances or preparing for a major purchase like a home.