What this calculator does

Debt-to-income ratio compares regular debt payments with gross monthly income. It is commonly used as a borrowing and affordability planning measure.

Formula used

Back-end debt-to-income equals housing payment, other debt payments and any new payment divided by gross monthly income. Housing ratio uses housing payment only.

How to read the result

A lower ratio usually leaves more room for bills, savings and unexpected costs. Lenders may define income and qualifying debts differently, so treat this as a planning ratio.

Assumptions

  • Uses gross monthly income.
  • Counts only monthly payments entered.
  • Does not include credit score, savings, dependants, taxes or lender policy.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions

What debts should be included?

Include regular debt payments such as loans, credit cards, car finance, student loans where relevant and other committed borrowing payments.