DTI (Debt-to-Income Ratio) Calculator
Your Debt-to-Income (DTI) ratio is a vital metric that banks and lenders in India and globally use to judge your borrowing capacity and financial risk.
How it works
DTI compares your monthly recurring debt obligations against your gross monthly income. A ratio of 35% or less indicates healthy finances, 36% to 43% is manageable but requires caution, and above 43% signifies high debt risk and may lead to loan rejections.
Formula
DTI = (Total Monthly Debt Obligations / Gross Monthly Income) × 100%
Calculates the percentage of your monthly income that goes directly toward servicing debt obligations.
| Symbol | Variable | Unit | Description |
|---|---|---|---|
| DTI | Debt-to-Income Ratio | % | |
| Debt | Sum of monthly loan EMIs and debt payments | ₹ | |
| Income | Gross monthly pre-tax income | ₹ |
Worked example
₹25,000 monthly debt with ₹80,000 gross monthly salary
- Monthly Debt EMIs:
- ₹25,000
- Gross Salary:
- ₹80,000
DTI = (25,000 / 80,000) × 100 = 31.25%. This falls in the 'Low / Healthy' range (≤35%), giving good loan approval probability with headroom of ₹3,800/mo for additional borrowing up to the 36% guideline.
Limitations
DTI does not account for discretionary spending or family emergency expenses.
Frequently asked questions
What is an ideal Debt-to-Income (DTI) ratio for home loan approval in India?
Most Indian banks and Housing Finance Companies (HFCs) prefer a DTI (or FOIR - Fixed Obligation to Income Ratio) between 40% and 50% for home loan eligibility.
How can I improve my DTI ratio?
You can lower your DTI by paying off high-interest loans (like credit cards or personal loans), refinancing for longer tenures to reduce monthly EMIs, or increasing your gross income.
Does rent count in the DTI ratio?
In standard mortgage underwriting, current rent is usually replaced by the proposed new home loan EMI rather than added together, though some unsecured lenders consider rent in expense ratios.
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Last reviewed: 2026-08-22.