Debt-to-Income Ratio Calculator
Calculate your DTI ratio to understand loan eligibility. See whether your debt load is healthy or needs attention.
Monthly Debt Obligations
Borderline. Some lenders accept up to 43%. Consider paying down debt before new applications.
Your Debt-to-Income (DTI) ratio is the single most important number lenders look at after your credit score. It measures the percentage of your gross monthly income that goes towards debt repayments. DTI tells lenders how much of your income is already committed, and whether you have room to take on new obligations. Understanding your DTI also gives you a personal financial health check — a DTI above 43% signals financial stress and the need to focus on debt reduction before any new borrowing.
📋 How to Use This Calculator
Enter your gross monthly income (before taxes and deductions). Then enter all monthly debt payments: housing (rent or home loan EMI), car loan EMI, student/education loan payments, credit card minimum payments, and any other regular debt payments. The calculator shows your DTI ratio as a percentage and rates it as Excellent, Good, Fair, or High with specific guidance. The DTI calculation: Total monthly debt payments ÷ Gross monthly income × 100.
💡 Key Facts & Information
DTI benchmarks used by Indian lenders: Below 20% — excellent, minimal risk; 20–36% — good, comfortably serviceable; 36–43% — acceptable to most lenders with conditions; above 43% — most lenders decline or charge premium rates. The FOIR (Fixed Obligation to Income Ratio) used by Indian banks is essentially the same concept as DTI, typically calculated on net income. Note: DTI includes all recurring debt payments but typically excludes utilities, insurance, food, and other living expenses. To improve DTI: pay off small debts entirely first (reduces number of obligations), increase income, or both.