What is DTI (Debt-to-Income Ratio)?
DTI measures how much of your monthly income goes toward debt repayments. It is the single most important number lenders use to evaluate your creditworthiness — and the best indicator of your financial health.
Formula: DTI = (Total Monthly Debt ÷ Gross Monthly Income) × 100
DTI Decision Engine
Get a complete financial health picture — not just a number.
How it's calculated
Step 1 — DTI Ratio: Add all your monthly EMIs and loan repayments (home loan, car, personal, credit card minimum payments, etc.) and divide by your gross monthly income.
DTI = (Monthly Debt / Gross Monthly Income) × 100
Example: 25,000 debt ÷ 80,000 income = 31.25%
Step 2 — Flexibility Score: Computed from your DTI, savings rate (savings ÷ income), and emergency fund coverage. A higher savings rate and larger emergency buffer increases flexibility.
Step 3 — Stress Score: A composite of your DTI level, emergency fund months, and income stability. Unstable income with high DTI compounds your financial risk significantly.
How to use this tool
- 1Enter your gross (pre-tax) monthly income — include salary, freelance, rent, or any recurring source.
- 2Add up all monthly debt obligations — EMIs for home, car, personal loans, and minimum credit card payments.
- 3Optionally enter how much you save each month and how many months of expenses you hold as an emergency fund.
- 4Select your income stability — irregular income magnifies financial risk and affects your stress score.
- 5Click "Analyse My Finances" to get your complete financial picture.
- 6Use the Loan Simulator at the bottom to test whether a new loan is safe before applying.
When does DTI matter most?
Applying for a home loan
Banks typically require DTI < 40%. Below 30% gets you the best interest rates.
Taking a personal loan
Most lenders cap total EMIs at 50% of income. Know your number before applying.
Planning a major purchase
High DTI means less cushion. Consider delaying large purchases until it improves.
Negotiating a salary hike
Calculate the income increase needed to safely afford a new financial commitment.
Reviewing your budget
DTI shows what percentage of future income is already committed — the real freedom metric.
Building long-term wealth
Low DTI + high savings rate = compounding working for you, not the bank.