Debt-to-Income Ratio Calculator
Calculate the percentage of your gross monthly income that goes towards required debt payments. Enter your monthly income before tax and the payments you are required to make each month.
Monthly income and debt payments
Enter all amounts using the same currency.
Gross monthly income
Use income before tax, insurance and other payroll deductions.
Include reliable rental, pension, freelance or business income.
Required monthly debt payments
Enter the amount due each month, not the remaining loan balance.
Your debt-to-income result
Where your ratio falls
0.0%Monthly debt breakdown
What is a debt-to-income ratio?
A debt-to-income ratio shows how much of your gross monthly income is already committed to required debt payments. The result is shown as a percentage. For example, a ratio of 30% means that ₹30 out of every ₹100 of gross monthly income is used for the debts included in the calculation.
Lenders may use this ratio as one part of an affordability assessment. It helps them understand whether a borrower already has substantial monthly repayment obligations. However, DTI is not the same as a complete household budget because it normally excludes food, utilities, transport, insurance and other everyday costs.
Debt-to-income formula
Suppose your gross monthly income is ₹90,000 and your required debt payments total ₹30,000. Dividing ₹30,000 by ₹90,000 gives 0.3333. Multiplying by 100 produces a debt-to-income ratio of approximately 33.3%.
What should be included?
Include contractual payments you are required to make each month. These may include a mortgage, home loan, vehicle loan, personal loan, education loan and minimum credit card payment. Use the payment due each month rather than the total amount still owed.
Gross income should include dependable income before tax and payroll deductions. Salary, pension income, regular rental income and established business income may be included when they are reasonably stable.
How to understand the result
Existing debt uses a relatively small part of gross monthly income.
Debt commitment is moderate, although full household expenses still need to be reviewed.
A significant share of income is committed to debt and additional borrowing may reduce financial flexibility.
Required payments use a large part of gross income and may create greater repayment pressure.
These ranges are general educational references. Banks and other lenders may use different limits, income rules and assessment methods. A particular ratio does not guarantee approval or rejection.
Why your lender may calculate a different ratio
A lender may exclude income that is irregular, recently started or difficult to verify. It may also include a proposed mortgage payment, use a different minimum payment for a credit card or account for obligations not entered in this calculator.
Credit history, employment stability, savings, deposit size, collateral and repayment history may also influence a lending decision. DTI is only one part of a wider assessment.
Ways to improve your DTI ratio
Reducing required monthly payments is the most direct way to improve the ratio. Paying off a smaller loan can sometimes remove an entire monthly payment. Refinancing may also reduce a payment, but extending the repayment period can increase total interest, so the full cost should be compared.
Avoid taking on unnecessary debt before an important loan application. A new vehicle loan or personal loan increases required monthly payments immediately. Reliable income growth can also improve the ratio, but repayments should not depend on uncertain or occasional income.
Calculation method and limitations
This calculator adds the income amounts entered, adds the required monthly debt payments and divides total debt by total gross income. Negative entries are treated as zero. The currency selector changes number formatting only; it does not convert between currencies.
The result does not include taxes, living expenses, future interest rate changes or lender-specific underwriting rules. It should be used for general planning and education rather than as a lending decision.
Common questions
Should rent be included?
Rent is normally a housing expense rather than a debt payment. However, some affordability assessments may consider rent or a proposed mortgage payment separately.
Should I use gross or take-home income?
Use gross income for the standard DTI calculation. For personal budgeting, also compare your payments with take-home income after essential expenses.
Do I enter the full credit card balance?
No. Enter the required monthly minimum payment, not the full outstanding balance.
Can the ratio exceed 100%?
Yes. This means the monthly debt payments entered are greater than gross monthly income. Check that monthly payments were entered rather than loan balances.
Does a low ratio guarantee approval?
No. Lenders may also consider credit history, employment, income verification, deposit size and other financial information.