Debt-to-Income Ratio Calculator

📉 Debt-to-Income Ratio Calculator

What is Debt-to-Income Ratio?

The Debt-to-Income (DTI) Ratio compares your monthly debt payments to your monthly income. It’s a key metric used by lenders to determine your ability to manage monthly payments and repay debts.

Formula:

DTI Ratio = (Total Monthly Debt / Monthly Income) × 100

Example:

If your monthly income is ₹50,000 and your total debt payments are ₹15,000, your DTI ratio is 30%. That’s generally considered a healthy ratio for loan approvals.

DTI Interpretation Guide:

• ✅ Below 36%: Good – Most lenders prefer this
• ⚠️ 36% to 43%: Acceptable – May need compensating factors
• ❌ Above 43%: Risky – Difficult to get loan approvals

Use this calculator to understand your financial position and prepare for loans like mortgages, personal loans, or credit cards.