Debt-to-income calculator
Lenders compare your debt payments to your income. Enter your gross income and monthly debt payments to see your debt-to-income and debt-service ratios.
Debt-to-income ratio
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How this calculator works
- Convert your annual gross income to a monthly figure.
- Add your housing cost and other debt payments to get total monthly debt service.
- Divide total debt service by gross monthly income for the debt-to-income ratio.
- Divide housing cost by gross monthly income for the housing ratio lenders look at separately.
Formula: DTI = total monthly debt payments ÷ gross monthly income × 100
Frequently asked questions
What is a good debt-to-income ratio?
Lower is better. Many lenders use guidelines of about 32% for housing costs alone and 40% for all debt payments combined, though each lender sets its own limits and considers your full profile.
Does my credit score matter as much as my ratio?
Both matter. A strong ratio with damaged credit can still be declined, and a high ratio can be declined even with good credit. Lenders assess the whole picture.
Should I include rent in my debt-to-income ratio?
Yes, if you are applying for a mortgage, lenders include your current housing cost. For an unsecured loan, some lenders focus on debt payments only.
Sources
- Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
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If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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