How is the DTI ratio calculated?

Divide your total monthly debt payments by your gross monthly income and multiply by 100. For example, Rs 30,000 in debts on Rs 1,00,000 income gives a 30% DTI.

Debt-to-Income (DTI) Calculator

Your DTI ratio is one of the most important numbers lenders check.

Income & Debts

Gross Monthly Income ($)

Monthly Housing Payment ($)

Rent or mortgage payment

Other Monthly Debts ($)

Loans, cards, car, EMIs

Back-end Debt-to-Income Ratio

—

Front-end Ratio (Housing only)

—

Max Monthly Debt at 36%

—

Assessment

—

How to read your DTI

The front-end ratio is your housing payment divided by income. The back-end ratio adds all other debts — this is the number lenders care about most.

Under 36% — healthy; most lenders approve comfortably.
36% – 43% — acceptable for some lenders, especially with a good credit score.
Above 43% — risky; you may face higher rates or denial.

DTI Calculator FAQ

What is a good debt-to-income ratio?▶

A back-end DTI of 36% or less is considered good. Staying under 43% is usually required for most loans, and under 50% for some government programs.

How can I lower my DTI?▶

Pay down credit card balances and small loans, avoid taking on new debt, or increase your income. Even small reductions improve your loan eligibility.

DTI: Monthly debt ÷ gross income

Good: Below 36%

Mortgage: Front ratio ≤ 28%

Lenders: Max ~43–45%

Debt-to-Income Ratio Calculator — your lending health score

Your debt-to-income (DTI) ratio is how lenders judge whether you can handle new debt. This calculator adds up your monthly obligations and divides by gross income to compute your front (housing-only) and back (total debt) ratios — instantly showing your lending health.

Understanding front and back DTI

Front-end ratio: housing costs (mortgage, tax, insurance) ÷ gross income. Target ≤ 28%.

Back-end ratio: ALL debt payments ÷ gross income. Target ≤ 36%.

Example: $30,000 housing + $18,000 other debts on $1,20,000 income → front 25%, back 40%. A second loan would push you over the 36% norm.

Improving your DTI

Pay off small high-rate debts first — each closed account lowers monthly obligations.

Increase income (side income, rental) or make a larger down payment to shrink the housing payment.

Avoid new credit lines 6 months before applying for a mortgage — lenders pull updated DTI on day one.

How to use this calculator

Enter your gross monthly income.
Enter monthly debt payments: housing, car, personal loans, cards, student loans, other.
Read your front-end and back-end DTI ratios with health status.
Check whether you're in the 'good' (≤36%) or 'caution' (37–45%) range.

Pro tips

Lenders approve up to 43–45% DTI, but 36% keeps you comfortable with life's surprises.
A zero-balance credit card still shows a minimum payment — close or settle old cards before applying.
Rent counts in the back-end ratio too, though not the front.

Frequently asked questions

What is a good debt-to-income ratio?▶

Lenders prefer a back-end DTI of 36% or below. 37–45% may qualify with strong credit and savings; above 45% rarely qualifies for prime mortgages.

How do I calculate DTI?▶

Add all monthly debt payments (housing, loans, cards, alimony) and divide by gross monthly income. Multiply by 100 for the percentage.

Debt-to-Income Ratio Calculator