Debt-to-Income Ratio Calculator
Your debt-to-income ratio is the share of your monthly income that goes to debt payments. Lenders use it to judge whether you can afford another loan.
Results
Debt-to-income ratio
34.2%
- Assessment
- Healthy: most lenders are comfortable
- Total monthly debt payments
- ₹41,000
- Ratio with the new loan
- 34.2%
- Assessment with the new loan
- Healthy: most lenders are comfortable
- Room for new payments at 36%
- ₹2,200
Monthly debt payments of ₹41,000 on an income of ₹1,20,000 give a debt-to-income ratio of 34.2%. Healthy: most lenders are comfortable.
Show the calculation steps
- Total monthly debt payments = ₹30,000 + ₹8,000 + ₹3,000 + ₹0 + ₹0 = ₹41,000.
- DTI = total monthly debt payments ÷ gross monthly income × 100 = ₹41,000 ÷ ₹1,20,000 × 100 = 34.2%.
- No new EMI entered.
- Room for new payments while staying at 36% = ₹2,200 a month.
- Thresholds vary by lender and country; 36% and 43% are common guides. Use gross (before tax) income if that is what your lender uses.
What ratio is good?
Many lenders like a DTI of 36% or less, and become cautious above about 43%. Above 50% it is hard to borrow more. The exact limits depend on the lender and the loan type.
How to lower your DTI
Increase your income, pay down or refinance debt, and avoid new loans before applying. The calculator's room figure shows how much new payment you could add and still stay at 36%.
Formula
DTI = Total monthly debt payments ÷ Gross monthly income × 100
Where:
- Debt payments
- = Rent or mortgage, loans and card minimums
- Gross income
- = Income before tax
Example calculation
₹1,20,000 income with ₹41,000 of debt payments
Inputs
- Gross Monthly Income
- ₹1,20,000
- Rent or Home Loan Payment
- ₹30,000
- Vehicle Loan Payments
- ₹8,000
- Credit Card Minimum Payments
- ₹3,000
- Education Loan Payments
- ₹0
- Other Loan Payments
- ₹0
- New Loan EMI You Are Considering
- ₹0
Result
- Debt-to-income ratio
- 34.2%
- Assessment
- Healthy: most lenders are comfortable
- Total monthly debt payments
- ₹41,000
- Ratio with the new loan
- 34.2%
- Assessment with the new loan
- Healthy: most lenders are comfortable
- Room for new payments at 36%
- ₹2,200
Step-by-step
- Total monthly debt payments = ₹30,000 + ₹8,000 + ₹3,000 + ₹0 + ₹0 = ₹41,000.
- DTI = total monthly debt payments ÷ gross monthly income × 100 = ₹41,000 ÷ ₹1,20,000 × 100 = 34.2%.
- No new EMI entered.
- Room for new payments while staying at 36% = ₹2,200 a month.
Important notes
- Lenders differ on what counts as income and debt, and some use net income.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is debt-to-income ratio calculated?
Total monthly debt payments divided by gross monthly income, times 100.
Does rent count as debt?
Lenders include rent or the new housing payment in the ratio.
What is FOIR?
The fixed obligation to income ratio used in India is very similar to DTI.
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