Debt-to-Income Ratio Calculator

Debt-to-Income Ratio: --%

Debt-to-Income Ratio Calculator

The Debt-to-Income (DTI) Ratio Calculator helps you assess how much of your monthly income goes towards repaying debt. It's an important metric used by banks and financial institutions to evaluate your loan eligibility.

What is Debt-to-Income Ratio?

The DTI ratio is the percentage of your monthly income that is used to pay existing loans and EMIs. A lower ratio indicates better financial health and a higher chance of loan approval.

Formula:

DTI Ratio = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

Steps to Use the Calculator:

  1. Enter your Monthly Income (before tax or deductions).
  2. Enter your total Monthly Debt Payments (EMIs, credit card dues, etc.).
  3. Click Calculate to see your DTI ratio as a percentage.

Example:

If your monthly income is ₹60,000 and your total monthly EMIs are ₹18,000:

DTI Ratio = (18,000 ÷ 60,000) × 100 = 30%

Why is DTI Important?

A DTI ratio of less than 35% is usually considered healthy. A high ratio (above 50%) may signal high debt stress and can lead to loan rejection.