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.