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Debt To Income Ratio Calculator

The Debt-to-Income Ratio is a financial metric that lenders use to assess whether you can afford a new mortgage alongside your existing debts. It’s calculated by dividing your total monthly debt payments by your gross monthly income, then multiplying by 100 to get a percentage.

How the DTI-Calculator Works

A DTI calculator asks you for:

  • Your gross monthly income (before tax)
  • Your monthly debt payments (credit cards, loans, existing mortgage, etc.)

Lenders use DTI to decide how much you can borrow, whether your application is low risk, and whether you might struggle if interest rates rise or your expenses increase. A lower DTI is generally better. Many lenders prefer DTI below ~40-50%, though thresholds vary.

Debt-to-Income Ratio Calculator
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Your Debt to Income Ratio is %

Good news! Most mortgage lenders will class your debt-to-income ratio as low. You’re unlikely to be declined for a mortgage based on your outgoings, but speaking to a mortgage broker before applying is still recommended as they can improve your chances of getting the best deal.

Most mortgage lenders will class your debt-to-income ratio as moderate, which means some of them might view your application with caution. Some lenders are much more strict than others when it comes to affordability and debt, so it’s important for you to find a lender who’s more lenient. You should speak to a mortgage broker before you apply to ensure you’re matched with a lender whose criteria you fit.

Most mortgage lenders will class your debt-to-income ratio as high. But that’s where we can help! With so much of your monthly income going towards debt repayments, you could struggle to get approved for a mortgage without the help of a mortgage broker. We can help you find a lender who’s more lenient on debt and affordability, and could still secure a mortgage approval.

Get in touch now to discuss this further with expert mortgage advisors for free.

The figures provided by this calculator are for illustrative purposes and actual figures would depend on your situation and circumstances. Please connect with the expert mortgage advisors we work with to discuss further.