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Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio and front-end ratio from income, debts and housing costs. Check lender qualification ranges.

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$
$

Rent or mortgage, including property tax and insurance.

Debt-to-income (DTI)

35.0%

Total of $2,100 / month

Front-end ratio

25.0%

Housing of $1,500 / month

Monthly gross income

$6,000

Remaining after debts

$3,900

Cash flow before other expenses

Lenders commonly look for a DTI at or below 43% (36% for many mortgages), with the housing portion ideally under 28% of gross income.

How it works

Front-end = housing ÷ income. Back-end = all debts ÷ income. Expressed as a percentage.

Example: $72,000 income, $1,500 housing, $600 debts → front-end 25%, back-end 35%.

Last updated: April 2026

How this calculator is verified

Checked by True Calculator automated test suite on

  • Formula verified against a published worked example in the automated test suite
  • Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests

The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.

When to Use This Calculator

Use the debt-to-income ratio calculator when you are about to apply for a home loan, car loan or personal loan and want to know whether a bank will see you as a safe borrower. Indian lenders look at how much of your monthly income is already committed to EMIs and other obligations; a ratio above the usual ceiling means the next loan gets rejected or shrunk. Enter your gross monthly income, your housing costs and your other monthly debt payments to get the front-end ratio and the overall debt-to-income ratio, with the ranges lenders typically use. It is also the tool for planning: run the numbers before buying a car or home to see how much new EMI you can take on without crossing the lender's threshold.

How to Use This Calculator

  1. Step 1: Enter your annual gross income in the annual income field.
  2. Step 2: Enter total monthly debt payments — card minimums, loan EMIs and any other instalments.
  3. Step 3: Enter the monthly housing cost — rent today, or the proposed home loan EMI when buying.
  4. Step 4: Read the front-end ratio (housing only), the back-end debt-to-income ratio and the income left after debts.

Worked Example

On an annual gross income of ₹24,00,000 (₹2,00,000 a month), a housing cost of ₹55,000 and other monthly debts of ₹40,000 produce a front-end ratio of 27.5% and a back-end debt-to-income ratio of 47.5%. Many lenders prefer the back-end ratio near or below the 36-43% band, so this borrower is above the comfortable range and left with about ₹1,05,000 a month after all obligations.

Tips and Common Mistakes

  • •Tip 1: Indian lenders express the same idea as FOIR — fixed obligation to income ratio — and usually keep all EMIs within 40-50% of monthly income.
  • •Tip 2: Count every obligation — gold loan EMIs, vehicle loans and card minimums all enter the ratio.
  • •Tip 3: Use the remaining-after-debts figure to check what is left for savings before committing to a bigger EMI.
  • ✗Mistake 1: Entering take-home pay when the tool asks for gross income, or mixing the two across fields — the ratio shifts materially.
  • ✗Mistake 2: Omitting the housing cost when checking lender ranges; the back-end ratio is what qualification rules use.

Frequently Asked Questions

What is a good debt-to-income ratio?

Lenders prefer a front-end ratio (housing only) at or below 28% and a back-end ratio (all debts) at or below 36%. Above 43% you'll struggle to qualify for most mortgages.

How is the debt-to-income ratio calculated?

Divide your total monthly debt payments by your gross monthly income and multiply by 100. Housing costs include mortgage or rent, property tax and insurance.

What counts as monthly debt in the DTI ratio?

Housing payments, auto loans, student loans, credit card minimums and other personal loans all count. Utilities, groceries and phone bills do not.

Is this debt ratio calculator free to use?

Yes, True Calculator's debt-to-income ratio calculator is completely free with no sign-up, no app install and no usage limits.

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