Debt-to-Income Calculator

How the ratio is calculated

The debt-to-income ratio is your total debt divided by your gross annual income, expressed as a percentage. It tells you how many years of gross income your debt corresponds to.

The debt-service ratio is your monthly debt payments divided by your net income. It shows how large a share of your take-home pay goes toward servicing debt.

What you enter and what you get

Enter your total debt, gross annual income, monthly debt service and net monthly income. The result gives the debt-to-income ratio as a percentage and the debt-service ratio as a percentage.

Both figures together give a fuller picture than either alone: one reflects the total amount of debt, the other the monthly burden.

Who it is for

The calculator is useful before applying for a new loan, when assessing your own ability to pay, and when you want to track your finances improving as debts are paid down.

Reading the result

A common US lending guideline keeps total debt payments under about 36–43% of gross income, and mortgage lenders often cap the housing payment alone near 28%. Treat high figures as a warning and consider lightening your debt.