Debt to Income Ratio Calculator
The debt to income ratio calculator divides your monthly debt payments by your gross monthly income (DTI = debts ÷ income × 100) to show how much of your earnings are already committed to loans — at 36%, for example, lenders consider you healthy, while above about 43% most will say no.
verified_userReviewed by the Calculopedia editorial teamLast updated 2026-08-15
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quizExample
How this calculator works, with real numbers (no JavaScript needed):
Inputs
- Gross annual income
- 1200000
- Monthly debt payments
- 30000
Results
- Debt-to-income ratio
- 30%
- Gross monthly income
- ₹1,00,000
- Monthly debt payments
- ₹30,000
- Income left after debts
- ₹70,000
- Lender outlook
- Good — most lenders approve comfortably
functionsThe formula
Your debt-to-income (DTI) ratio tells lenders how much of your income is already committed to debt — and therefore how much room you have for a new loan. In the US it is the single most important number in mortgage approval; in India the same idea runs under the name FOIR (Fixed Obligation to Income Ratio) and drives most personal, home and car loan eligibility decisions. Whatever it is called, the arithmetic is identical, and it is the number lenders check before they check your credit score.
The formula
DTI = total monthly debt payments ÷ gross monthly income × 100
Include: loan EMIs, credit-card minimums, car loans, rent and alimony. Exclude utilities, insurance and groceries.
Worked example
Gross annual income ₹12,00,000 (₹1,00,000/month) with ₹30,000/month in debt payments:
DTI = 30,000 ÷ 1,00,000 × 100 = 30%
A 30% DTI leaves 70% of income, or ₹70,000 a month, available — comfortable by most lenders' standards.
What lenders look for
| DTI | Outlook |
|---|---|
| Below 36% | Good — approvals are routine |
| 36–43% | Fair — at the typical mortgage ceiling |
| Above 43% | High — most lenders will say no |
Indian banks typically operate in a similar band, often using a defensive 40–50% FOIR ceiling for personal and consumer loans and a more generous allowance for home loans backed by property. A bank or NBFC may quote "up to 60% FOIR" while also applying income, credit-score and tenure caps — the ratio is the gate, not the whole rule.
How DTI sets your maximum loan
The ratio does not just qualify you; it caps the EMI. At a 36% ceiling, a ₹1,00,000 monthly income allows up to ₹36,000 in total EMIs across all debts. If you already pay ₹30,000, a new loan can add only ₹6,000 a month — which, at current rates, supports a surprisingly small amount borrowed. That is why people discover their "eligibility" shrinks the moment they buy a car on EMI before applying for a home loan.
Lowering your DTI
- Pay off high-EMI debts first — a small personal loan cleared makes a big dent.
- Increase income — a promotion or side income lowers the ratio.
- Avoid new credit before applying for a home loan — even small EMIs move the number.
- Extend the tenure of an existing loan temporarily to shrink its EMI — use a loan EMI calculator to see the trade-off.
Common blind spots
- Gross, not net. Lenders use gross monthly income. Quoting your take-home is conservative; quoting a bonus-heavy gross is optimistic — an inflated income figure can push a ratio into approval territory the bank would not see when it checks actual payslips.
- Co-applicants count. A spouse's income can be added to the numerator side of eligibility, but both sides' debts then sit in the DTI.
- Rent is a debt for DTI purposes. It is not a bank liability, but lenders treat it as a fixed obligation when you are applying for a home loan, on top of the new EMI you are requesting.
- Loan-for-loan games. Shifting a loan to a longer tenure lowers the DTI on paper but raises total interest — a fix that costs you money.
Your DTI is personal financial health in one number: keep it under 40% and you keep your borrowing options open for when you actually need them.
helpFrequently asked questions
question_markHow do I calculate my debt-to-income ratio?
Divide your total monthly debt payments (EMIs, credit cards, rent) by your gross monthly income and multiply by 100. Monthly income = annual income ÷ 12. Example: ₹30,000 of debts against ₹1,00,000 a month gives a 30% DTI.
question_markWhat is a good debt-to-income ratio?
Below 36% is considered good and generally passes loan approvals. Between 36–43% is the typical ceiling for mortgages, and above 43% will be difficult to approve. Indian banks use the same logic under the name FOIR, often with a 40–50% ceiling for consumer loans.
question_markWhat counts as debt in the DTI calculation?
Recurring obligations: loan EMIs, credit-card minimum payments, auto loans, rent and alimony. Not counted: utilities, groceries, insurance and discretionary spending.
question_markHow can I lower my DTI quickly?
Pay off smaller high-interest debts first, increase income, and avoid taking on new loans before a major application. Every reduction in monthly EMIs directly improves the ratio — and any new EMI has to fit inside the remaining room.