Debt-to-Income Ratio Calculator
Calculate your Debt-to-Income (DTI/FOIR) ratio to see how much of your monthly income goes toward debt, and how it affects your loan eligibility.
Income & Debt (Monthly)
Your Debt-to-Income Ratio
DTI / FOIR Ratio
33.8%
Total Monthly Debt
₹27,000
Healthy
Disposable income after debt payments: ₹53,000 / month
What is this Calculator?
The Debt-to-Income (DTI) Ratio Calculator — known as FOIR (Fixed Obligation to Income Ratio) among Indian lenders — measures what percentage of your gross monthly income goes toward repaying existing debt. It's one of the single biggest factors banks and NBFCs use to decide how much more you can borrow.
It's useful for anyone planning to apply for a new home, car, or personal loan, or simply wanting an honest read on how stretched their monthly budget already is.
How it Works
The formula is straightforward:
DTI (FOIR) = (Total Monthly Debt Payments / Gross Monthly Income) × 100
"Total Monthly Debt Payments" includes your home loan EMI, car loan EMI, personal loan EMI, education loan EMI, and credit card minimum dues — essentially every fixed monthly obligation. It does not include day-to-day living expenses like groceries or rent (unless you're specifically asked to include rent by a particular lender's policy).
Most Indian banks and NBFCs cap total FOIR — including the new loan being applied for — somewhere between 40% and 55%, depending on the borrower's income level, credit score, and the lender's internal policy.
Example Calculation
Meera earns a gross monthly salary of ₹80,000. She currently pays a home loan EMI of ₹20,000, a car loan EMI of ₹5,000, and a credit card minimum due of around ₹2,000.
- Total Monthly Debt = ₹20,000 + ₹5,000 + ₹2,000 = ₹27,000
- DTI = (27,000 / 80,000) × 100 = 33.75%
At 33.75%, Meera is in a healthy range (below the common 36% comfort threshold), meaning she likely has room to take on a modest additional loan, such as a personal loan for a specific need, while still staying under most banks' FOIR limits.
Benefits of Using This Tool
- Loan Application Readiness: Know roughly where you stand before a bank pulls your FOIR, so there are no surprises during a home or car loan application.
- Budget Health Check: A high DTI is an early warning sign of over-leveraged finances, even before you miss a single payment.
- Prioritization: If your DTI is high, this instantly tells you it's time to prioritize paying down existing debt (or increasing income) before taking on anything new.
Practical Tips:
- Aim to keep your DTI under roughly 36% for a comfortable financial cushion — most planners consider this the "healthy" zone, even though banks may lend up to higher limits.
- Pay off high-interest debt (like credit card balances) first — it reduces your DTI fastest per rupee while also saving you the most in interest.
- Before applying for a large loan like a mortgage, avoid taking on any new EMIs or maxing out credit cards — lenders check your DTI right before disbursement, not just at initial approval.
Frequently Asked Questions (FAQs)
What DTI ratio do banks consider safe for a home loan?
Most Indian banks prefer a FOIR (including the new home loan EMI) of 40-50% or lower, though this varies by lender, income bracket, and credit score. Higher-income applicants are sometimes allowed a higher FOIR since a larger absolute amount remains for living expenses.
Does DTI include my rent or household expenses?
Generally no — DTI/FOIR focuses on fixed loan and credit obligations (EMIs, credit card dues), not variable living expenses like groceries or utilities. However, some lenders may factor in rent paid if you don't own a home, so check the specific lender's policy.
How can I quickly lower my DTI ratio?
Two levers: reduce your total monthly debt (by paying off a loan early or consolidating high-interest debt into a lower-interest one) or increase your gross income (a raise, bonus, or additional income source). Avoiding new EMIs before a big loan application also helps.
Is DTI the same as my credit score?
No, they're related but different. Your credit score reflects your repayment history and credit behavior over time, while DTI is a real-time snapshot of how much of your current income is already committed to debt. Lenders typically look at both together when deciding your loan eligibility and interest rate.
Sources & References
- Standard FOIR (Fixed Obligation to Income Ratio) methodology used by Indian banks and NBFCs