Debt-to-Income Ratio Calculator

What the debt-to-income ratio calculator does

The debt-to-income ratio calculator shows what share of your gross monthly income is committed to debt repayments. It divides your total monthly debt payments by your gross monthly income and expresses the result as a percentage, known as your DTI.

When you apply for a mortgage, a car loan, or a personal loan, one of the first things a lender checks is how much of your income already goes to existing commitments. A lower ratio suggests you have room to service new borrowing; a higher one means much of your income is already spoken for. The calculator gives you the same figure a lender would work out, before you apply.

How the ratio works

Every debt payment claims part of your income, and the more is already committed, the less flexibility you have for new borrowing, saving, or unexpected costs.

To find the ratio, add all your recurring monthly debt obligations and divide by your gross monthly income, the amount you earn before tax and deductions. Multiplying by 100 turns the fraction into a percentage. A result of 30% means 30 of every 100 you earn is committed to debt before you spend on anything else.

Using gross income lines the result up with the way most lenders assess affordability. The measure ignores taxes and living costs and looks only at debt against earnings, which keeps it simple to compare.

Reading your result

Thresholds differ between countries and lenders, but a few broad bands are widely recognised.

• At or below 36% is generally considered healthy. Debt is well within reach of your income, and you likely have capacity for new borrowing if you need it.
• Between 37% and 43% is a middle zone. Many lenders will still work with you, but the margin for error is thinner and budgets feel tighter.
• Above 43%, borrowing options narrow. A large share of income is already committed, and taking on more debt becomes risky.

A ratio that looks high may be fine if it is temporary, such as during the early years of a mortgage, and a low ratio does not guarantee approval if other factors are weak.

Which payments to include

Include recurring debt obligations such as:

• Mortgage payments or rent
• Personal loan and car loan repayments
• Student loan payments
• Minimum credit card payments
• Child support or alimony

Everyday living costs like groceries, utilities, insurance premiums, phone bills, and streaming subscriptions are generally excluded. Adding ordinary expenses would overstate the ratio. When in doubt, ask whether a payment services a debt or covers a cost of living.

How to use the calculator

1. Enter your total monthly debt payments, adding up every recurring obligation.
2. Enter your gross monthly income before tax.

The tool returns your debt-to-income ratio as a percentage and shows how much income remains after debt each month, which is the money available for living costs, saving, and everything else.

Add the payment a new loan would bring and watch the ratio climb, or reduce a balance you are paying off and see it fall.

Tracking the ratio over time

DTI is also useful as a personal gauge. A ratio that rises over time warns that debt is growing faster than income, often before the strain shows up as missed payments or dwindling savings. A falling ratio confirms that your repayments are working. When you weigh a new monthly payment, you can check what it does to your overall ratio as well as whether you can afford it on its own.

How to improve your debt-to-income ratio

Paying down balances, consolidating or refinancing to a lower payment, and avoiding new borrowing all shrink the monthly debt payments; targeting high-payment debts first tends to move the ratio fastest. A raise, additional work, or new income streams increase gross income and pull the ratio down even if debts stay the same. Trimming a single payment or adding a modest income stream can shift the percentage by several points, which may move you into a more comfortable band.

Run your figures before taking on new debt and revisit them as you pay balances down.

This article is general information only and is not financial advice.

About This Debt-to-Income Ratio Calculator

Use this debt-to-income ratio calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.