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Debt-to-Income Ratio Calculator

Calculate your debt-to-income (DTI) ratio. Enter your total monthly debt payments and your gross monthly income to see the percentage of income that goes to debt.

Debt-to-income ratio
25%
CategoryHealthy
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How it works

Lenders use DTI to assess affordability. A lower DTI is better — below 36% is generally considered healthy.

DTI = (Monthly debt ÷ Gross monthly income) × 100

Worked examples

  • 500 of monthly debt against 2,000 gross income

    Daudi owes 500 a month against 2,000 of gross income — the arithmetic works in any currency.

    A ratio of 25%. The arithmetic is the same in any currency: total monthly debt payments divided by gross monthly income.

  • Two loans that add up to the same total

    Asha's two loans in Dar es Salaam add up to the same total, so her ratio is identical.

    A 250,000 TZS car payment plus a 150,000 TZS personal loan against 1,600,000 TZS of gross income is the same 25% - what counts is the monthly obligation, not how many lenders are involved.

  • A ratio that lands exactly on 36%

    Daudi, checking a ratio that comes to exactly 36% before applying.

    Monthly debt of 720 against gross income of 2,000 gives exactly 36%, which sits on the line the healthy-range guidance draws. A ratio on a boundary does not decide an application by itself, because a lender can read the same figure differently depending on the rest of the file.

What this assumes, and where it does not apply

What it assumes

  • Total monthly debt payments are divided by gross monthly income, before tax.
  • Only the payments you enter count as debt; living costs are not debt service.
  • Every debt payment is counted at the amount paid each month, so a balance owed or the total value of a loan is not part of the calculation.

Where the result does not apply

  • There is no single statutory ceiling: lenders set their own thresholds and treat some obligations differently.
  • A lender may use net income rather than gross, and may include a stressed payment on a new loan rather than its actual one.
  • Rent, school fees and utilities are typically not counted in the ratio even though they compete for the same income.
  • A guaranteed bonus or a second income that is not part of the regular monthly pay is not in the figure, so a lender that counts it will calculate a lower ratio than this.

Frequently asked questions

What is a good DTI ratio?

A DTI below 36% is generally considered healthy; above 50% is high and can make borrowing harder.

What counts as monthly debt?

Recurring obligations like loans, credit-card minimums and other fixed payments.

Why does DTI matter?

Lenders use it to decide whether you can afford a new loan.

Should I include my rent in monthly debt?

No, rent is a living cost rather than a debt payment, and this ratio counts only obligations such as loans and credit-card minimums. A lender considering a mortgage may treat a new housing payment differently, which is why the ratio alone does not decide an application.

Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.

Delta Tech Solutions prepared this page. No external tax, accounting or legal professional reviewed it — the figures were checked against the sources listed above, and you should confirm anything you rely on with the authority that sets it.

Sources: Consumer Financial Protection Bureau — what is a debt-to-income ratio?

Maintained by David M at Delta Tech Solutions · Figures last checked 10 October 2026 · Next check due 10 April 2027

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