Debt to Income (DTI) Calculator
Who Is This Calculator For?
This DTI Calculator is designed for:
- Salaried professionals checking loan eligibility readiness
- Self-employed/consultants who want a quick affordability gauge
- Home, auto, education loan applicants planning new credit
- Credit-card users evaluating the impact of revolving balances
- Financial advisors/finfluencers giving clients a simple debt health check
- Students/first-time borrowers learning healthy borrowing limits
Whether you’re planning a home loan or consolidating multiple EMIs, this tool gives a fast, intuitive overview of your monthly debt burden.
How This DTI Calculator Works
The calculator measures how much of your monthly income is taken up by fixed debt payments (EMIs).
Formula:
DTI = (Total EMIs ÷ Monthly Income) × 100
Inputs
- Monthly income (take-home or gross — see note below)
- All monthly EMIs (you can add multiple: home, auto, personal, education, device loans, etc.)
- Credit cards: use minimum due if you revolve, or enter the EMI if you’ve converted to EMI
Outputs
❌ Risky: > 40%
DTI % (to one decimal)
A simple verdict band:
✅ Safe: < 30%
⚠️ Borderline: 30–40%
Key Assumptions and Logic:
| Parameter | Value / Logic | Notes |
|---|---|---|
| Income basis | User-entered monthly income | For personal budgeting, take-home (net) is conservative. Lenders may use gross or policy-defined income. |
| Fixed obligations included | All EMIs (home, auto, personal, education, consumer durable), loan top-ups, BNPL EMIs | Enter credit-card minimum due if revolving; or EMIif converted. |
| Obligations typically excluded | Day-to-day expenses, rent, utilities, insurance premiums | Some underwriters consider rent separately; this tool focuses on debt only. |
| Verdict bands | Safe <30%, Borderline 30–40%, Risky >40% | Benchmarks used for guidance; lenders have their own internal cut-offs. |
| Edge handling | If income = 0, DTI is undefined; if EMIs = 0, DTI = 0% | Practical guardrails for user input. |
| Example | Income ₹1,00,000; EMIs ₹28,000 ⇒ DTI = 28% | Verdict: Safe under this tool’s bands. |
Realism Note
Debt to Income is a quick indicator, not a loan decision. Lenders also consider:
- Credit score/history (e.g., CIBIL), existing delinquencies
- Income stability (job tenure, business vintage), age, co-applicant profile
- Loan-to-value (LTV) for secured loans, collateral, employer category
- Internal credit policies and documentation quality
Use DTI to self-assess affordability; actual approvals can differ.
Source References (General):
- Common retail-lending practice on DTI/FOIR (Fixed Obligations to Income Ratio) used by banks/NBFCs
- Personal finance guidelines on safe debt levels and EMI planning (No single regulator-mandated DTI cap; thresholds vary by lender and product.)
Disclaimer:
This calculator provides an educational estimate based on user inputs and general benchmarks:
- DTI bands (Safe/Borderline/Risky) are guidance, not approval rules.
- Lenders may compute affordability differently (e.g., using gross income, excluding/including specific obligations).
- This tool does not account for future income variability, interest-rate resets, or charges/fees.
Note: Indiagraphs does not provide financial advice and is not responsible for decisions made using this tool. Please consult your lender/financial advisor for personalized guidance.
Frequently Asked Questions (FAQ)
1) What is Debt To Income (DTI) and why does it matter?
DTI shows how much of your monthly income goes to repaying debt. Lower DTI = more headroom for new loans and better financial resilience.
2) Should I use net (take-home) or gross income?
For personal budgeting, net income is more realistic. Lenders may use gross or a policy-defined income measure. You can try both to see the range.
3) Which EMIs should I include?
Include all fixed debt payments: home, auto, personal, education, device/consumer durable EMIs, BNPL EMIs, and credit-card minimum due (if revolving). If you’ve converted card dues to EMI, include that EMI.
4) Is rent counted in DTI?
Classic DTI/FOIR focuses on debt obligations. Rent and living costs aren’t part of the formula here, though underwriters may review them separately.
5) What is a “good” DTI?
As a rule of thumb in this tool:
< 30%: comfortable;
30–40%: borderline;
> 40%: risky.
Lenders’ cut-offs differ by product, borrower profile, and documentation.
6) My DTI is high. How can I improve it?
Prepay/close small high-cost loans first
Consolidate costly debt to a lower rate (where suitable)
Increase tenure on new loans to reduce EMI (watch total interest)
Avoid new credit until DTI improves
Grow income (salary revision, side income with documentation)
7) How do credit cards affect DTI?
If you revolve (don’t pay in full), include the minimum due. Better: convert large dues to a structured EMI and include that EMI.
8) Is DTI the same as FOIR/DBR?
They’re closely related. FOIR/DBR (Fixed Obligations/Debt Burden Ratio) are lender terms for similar concepts—method details can differ.
9) How does a co-applicant change DTI?
Use combined income and combined EMIs. Joint applications can lower DTI and improve eligibility if the co-applicant has strong income/credit.
10) My income varies (freelance/commission). What should I enter?
Use a conservative monthly average (e.g., last 6–12 months). When applying, lenders may annualize or average income per policy.
11) Does DTI guarantee loan approval?
No. It’s only one factor. Credit history, documentation, LTV, employer category, and internal policies also matter.