Debt-to-Income (DTI) Ratio Calculator User Manual

Introduction

The Debt-to-Income (DTI) Ratio Calculator is a free and open-source online tool designed to help you calculate your debt-to-income ratio. This ratio is an important financial metric that compares your monthly debt payments to your monthly income, providing insight into your financial health and borrowing capacity.

How to Use the Calculator

1. Enter Monthly Income:

   • In the "Monthly Income" field, input your total monthly income before taxes.
   • Include all sources of income such as salary, investments, and rental income.

2. Enter Monthly Debts:

   • In the "Monthly Debts" field, input the total of all your monthly debt payments.
   • Include payments for loans, credit cards, mortgages, and other debts.

3. Calculate DTI:

   • Click the "Calculate DTI" button to compute your debt-to-income ratio.
   • The result will be displayed as a percentage in the "DTI Ratio" field.

4. Interpret the Results:

   • Generally, a lower DTI ratio is better.
   • A DTI ratio of 36% or less is typically considered good.
   • A ratio between 37-42% is moderate.
   • A ratio of 43% or higher may make it difficult to qualify for loans.

5. Additional Features:

   • Use the "Copy" button to copy the calculated DTI ratio to your clipboard.
   • Click "Clear" to reset all fields and start a new calculation.

Tips for Accurate Calculations

• Use consistent time periods for both income and debts (e.g., monthly figures for both).
• Include all regular debt payments, even if they're not due every month.
• For variable income, consider using an average of the past few months.

Troubleshooting

• If you receive an error message, ensure all fields contain valid numerical inputs.
• The monthly income must be greater than zero to calculate the ratio.

Remember, this calculator provides a general assessment of your financial situation. For personalized financial advice, consult with a qualified financial professional.