The Debt-to-Income Ratio Calculator is a free, browser-based tool built with JavaScript that helps users assess their financial health by calculating their debt-to-income (DTI) ratio. It supports additional income sources and optional debt factors, providing users with a percentage-based DTI along with contextual feedback on their result. This tool is ideal for individuals preparing for loan applications, financial planning, or credit evaluation.

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Instructions:

Step 1: Enter Monthly Income

1. In the "Monthly Income" field, input your regular gross monthly income (before taxes).

2. The field automatically formats your entry with commas for easier readability.

Step 2: Enter Monthly Debt Payments

1. In the "Monthly Debt Payments" field, input the total of all monthly debt obligations (e.g., credit cards, loans, car payments).

Step 3: (Optional) Add Bonus or Extra Income

1. Enter your yearly bonus or overtime income in the "Annual Bonus / Overtime Income" field.

2. Add any additional monthly income (e.g., rental income, side jobs) in the "Additional Monthly Income" field.

Step 4: (Optional) Enter Other Debts

1. In the "Annual Debt" field, enter any debt that occurs on a yearly basis (e.g., annual loan fees or subscriptions).

2. If applicable, input your monthly housing expenses (rent or mortgage) in the "Monthly Housing Costs" field.

Step 5: Calculate Your DTI

1. Click the “Calculate DTI” button.

2. The tool will display your DTI ratio as a percentage based on total monthly income and debts.

Step 6: Review the Recommendation

1. Below the result, a recommendation message will appear:

• Below 36%: Healthy DTI range; favorable for most lenders.
• 36% – 43%: Acceptable, but could be improved before applying for new credit.
• Above 43%: High debt load; consider reducing debt or increasing income.

Tips:

• Ensure all monetary inputs are numbers only (no currency symbols).
• Use the optional fields for a more accurate and realistic calculation.
• The calculator is for informational purposes and does not replace professional financial advice.