Quickly see how much of your monthly income goes toward debt payments. Lenders use DTI to decide home, car, and personal loan approvals—stay in a healthy range and plan smarter.
Lenders generally prefer a DTI below 36% for comfortable approval. Use this as an educational guide only; every bank has its own policy.
Approximate total monthly debt payment if you stayed near the commonly suggested 36% DTI.
Debt-to-Income Ratio (DTI) is one of the most widely used credit health indicators in personal finance. It compares how much you owe each month to how much you earn. Instead of looking only at your credit score or income in isolation, lenders combine both and use DTI to understand whether you can comfortably handle additional loan payments without becoming overburdened.
In simple terms, DTI answers a straightforward question: "Out of every 100 units of income you earn, how many are already committed to debt repayments?" The higher this percentage, the less breathing room you have in your monthly budget. Banks, NBFCs, and mortgage lenders rely on this number when deciding home loans, car loans, personal loans, and credit card limits.
Our calculator focuses on the most common and practical version called front-end DTI, which uses your gross monthly income (income before tax) and your total monthly debt obligations. Although exact approval cut‑offs vary by country and by lender, many financial experts consider a DTI below 36% as a healthy zone, 36–43% as manageable with caution, and beyond that as potentially risky.
This tool is designed to be fast and practical so you can check your loan readiness in a few seconds. All calculations happen instantly in your browser; no data is stored or transmitted to any server. Follow these steps:
Because we separate income and different categories of debt, you can easily experiment. For example, increase your future home EMI while keeping other values constant to see whether a planned loan pushes your DTI beyond comfortable levels.
Once you calculate your ratio, you will see three important values: your DTI percentage, your current monthly debt burden, and an estimated maximum debt capacity at 36% DTI. Together, these numbers help you quickly evaluate whether you can safely take on new loans.
While there is no single global standard, the following ranges are widely used as a rough guideline in the lending industry:
Our calculator highlights your range visually using a colored progress bar—from green at low DTI to amber and red as the value climbs. Remember that this is only an educational model. Real‑world approvals consider many other factors like employment stability, existing collateral, credit score, and local regulations.
If your DTI turns out higher than you expected, it does not automatically mean you are bad with money. Often, high DTI happens during specific life phases—such as buying your first home, financing education, or handling medical expenses. What matters is how quickly and consistently you move your ratio in the right direction.
Here are some practical strategies many financial planners suggest:
The key is consistency. Revisit this calculator every few months to see whether your ratio is improving. Even a movement of a few percentage points in the right direction can make a noticeable difference when you later apply for a large loan like a home mortgage.
No. Your credit score summarizes your past borrowing and repayment behavior, while DTI focuses on your current affordability. Lenders often look at both together—good credit with a very high DTI can still lead to rejection, and a moderate score with a strong DTI may still qualify for approval.
Most lenders calculate DTI using gross income (before tax), which is why this tool uses the same convention. However, you can also experiment with your take‑home (net) income to see a more conservative picture of how tight your real budget feels.
No. DTI usually includes only fixed, recurring debt obligations such as EMIs and minimum loan payments. Regular living expenses—food, utilities, fuel, school fees—are extremely important for budgeting but are not included in the formal DTI calculation.
This tool is for education and planning only. It does not submit any application and cannot guarantee approvals. Each bank or lender has its own underwriting rules, internal risk models, and documentation requirements. Always treat the result as a helpful indicator, not final advice.
