Debt-to-Income (DTI) Calculator – Affordability & Lending Eligibility

Q: What is Debt-to-Income (DTI)?

DTI measures how much of your gross monthly income goes toward required debt payments. It’s a common screening metric for loans and mortgages.

Q: Do I use gross or net income?

Use gross monthly income (before tax and deductions). If you only know annual income, divide by 12 to estimate monthly.

Q: What counts as “debt payments”?

Include repayments you are required to make every month: personal/auto/student loans, minimum credit-card payments, alimony/child support, and—when evaluating a mortgage—the expected housing payment (PITI/fees). Exclude everyday expenses unless your lender requires them.

Q: What is a “good” DTI?

Lower is better. As general guidance only, many lenders prefer < 35% and may cap around 40–45% depending on loan type and country. Always check your lender’s criteria.

Q: How can I lower my DTI?

Pay down balances, refinance to reduce required payments, avoid new credit, consider longer terms cautiously, or increase income. Recalculate to track progress.

Work out your DTI ratio for mortgages and loans. Enter monthly income and payments to see your percentage instantly, with tips to improve it.

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⚠️ Advisory only: Results are estimates. Lender policies vary; verify with your lender or a qualified advisor.

Cinematic 3D illustration of a man holding a lime-green pie chart and a rolled-up financial document, with floating icons for DTI percentage and dollar value, promoting a debt-to-income calculator. — Work out your DTI ratio for mortgages and loans. Enter monthly income and payments to see your percentage instantly.

Calculate Your Debt-to-Income Ratio

Enter income and debts to calculate your DTI.

Why Use This DTI Calculator?

Instant Debt-to-Income % Result

Automatically computes your ratio as you type.

Simple, Clear Input Fields

Add income and monthly debts with simple fields.

Supports Multiple Currencies

Works with £ / ₹ / € / $ — just keep units consistent.

Tips to Improve Your DTI Score

Guidance to lower your DTI over time.

DTI Calculation Process (3 Simple Steps)

Enter Total Monthly Income

Use gross monthly income (before tax).

Add Monthly Debt Payments

Loans, credit cards (min), car, student loans, alimony; include expected housing payment if assessing mortgage.

Review DTI % and Next Steps

See DTI %, then explore tips to reduce it if needed.

How to Use This Debt-to-Income Calculator

Use gross monthly income. If you only know annual income, divide by 12.
Enter required minimum credit-card payments, not your typical spend.
For mortgages, include the expected monthly housing payment (principal, interest, taxes, insurance, fees).
Do not include everyday expenses (utilities, groceries, petrol) unless your lender requires it.

How Lenders Use Your DTI Ratio for Approvals

Your Debt-to-Income ratio compares your total required monthly debt payments to your gross monthly income. A lower DTI generally indicates more capacity to take on new debt. Lender limits vary by product and market, so use this figure as an orientation—not approval.

DTI Formula Explained (With Worked Example)

DTI (%): DTI = (Total monthly debt payments / Gross monthly income) × 100
Convert annual to monthly income: Gross monthly = Annual gross / 12
What counts as monthly debt? Required payments like loans, car finance, student loans, alimony/child support, minimum card payments; optionally housing payment when evaluating a mortgage.

Worked example: Gross monthly income = £4,000. Monthly debts: Car £300 + Credit card £150 + Student loan £200 = £650 total.
DTI = 650 / 4,000 × 100 = 16.25%.

Typical guidance (varies by lender): Lower is better. Some products prefer < 35% and may cap around 40–45%. Always check the exact criteria of your lender and country.

DTI Calculator – FAQs

DTI measures how much of your gross monthly income goes toward required debt payments. It’s a common screening metric for loans and mortgages.

Use gross monthly income (before tax and deductions). If you only know annual income, divide by 12 to estimate monthly.

Include repayments you are required to make every month: personal/auto/student loans, minimum credit-card payments, alimony/child support, and—when evaluating a mortgage—the expected housing payment (PITI/fees). Exclude everyday expenses unless your lender requires them.

Lower is better. As general guidance only, many lenders prefer < 35% and may cap around 40–45% depending on loan type and country. Always check your lender’s criteria.

Pay down balances, refinance to reduce required payments, avoid new credit, consider longer terms cautiously, or increase income. Recalculate to track progress.

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What Users Say About Our Financial Tools

Overall Rating

5.0/5 3 reviews

Priya

This estimator feels like a mini financial advisor. It’s incredibly helpful for first-time buyers to understand their limits. The income-to-debt ratio logic is spot on.

Dhruv

This tool is a lifesaver for budgeting. It’s intuitive and gives a clear breakdown of monthly payments. I especially like the amortization summary—it’s great for planning long-term.

Rohan

Simple, fast, and accurate. The BMI Calculator gives instant results with clear health categorization. I appreciate the clean layout and mobile responsiveness—it’s perfect for quick checks on the go

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⚠️ All services are offered on an advisory basis only. We do not act as legal, immigration, or financial representatives, and we do not guarantee outcomes. Any actions taken based on our guidance are the responsibility of the individual.