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Calculate your DTI ratio to understand your borrowing capacity
Before taxes and deductions
Rental income, side business, etc.
Total minimum payments across all cards
Alimony, child support, etc.
Quick Scenarios:
0.0%
Excellent
Your DTI ratio is excellent! You have good financial health and should qualify for most loans with favorable terms.
Ideal: Below 28%
Ideal: Below 36%
Additional monthly EMI you can afford based on lender requirements:
Most lenders prefer
Qualified mortgage limit
Rarely approved
Strong financial position. Easily qualify for loans with best rates.
Healthy ratio. Should qualify for most loans without issues.
Manageable but higher. May face scrutiny or higher rates.
Challenging. Limited loan options. Focus on debt reduction.
Critical. Loan approval unlikely. Immediate action needed.
| Loan Type | Front-End DTI | Back-End DTI | Notes |
|---|---|---|---|
| Home Loan (Conventional) | ≤ 28% | ≤ 36% | Traditional 28/36 rule |
| Home Loan (FHA) | ≤ 31% | ≤ 43% | More flexible for first-time buyers |
| Personal Loan | N/A | ≤ 40% | Varies by lender |
| Car Loan | N/A | ≤ 45% | Some lenders accept higher DTI |
| Student Loan | N/A | ≤ 40% | Government-backed loans more flexible |
Debt-to-Income (DTI) ratio is the percentage of your gross monthly income that goes toward paying debts. It's one of the key metrics lenders use to determine your ability to manage monthly payments and repay borrowed money. A lower DTI ratio indicates better financial health and higher likelihood of loan approval.
DTI Ratio = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
Example: If your monthly debts are ₹25,000 and gross income is ₹75,000:
DTI = (25,000 ÷ 75,000) × 100 = 33.3%
Percentage of income that goes toward housing costs (rent/mortgage, property tax, insurance). Lenders prefer this to be below 28%.
Percentage of income toward all monthly debt obligations including housing. Most lenders want this below 36%, with 43% being the maximum for qualified mortgages.
✅ Included in DTI:
❌ NOT Included in DTI:
While both are important, they measure different things:
You need both a good credit score AND a low DTI ratio to get approved for loans with favorable terms.