What Is a Debt-to-Income Ratio?
Your Debt-to-Income (DTI) ratio measures how much of your monthly income goes towards debt payments. It's calculated as:
DTI = (Total Monthly EMIs ÷ Monthly Income) × 100
Indian banks heavily rely on this ratio (often called FOIR — Fixed Obligation to Income Ratio) when deciding whether to approve your loan application and what interest rate to offer.
How to Use This Calculator
- Enter your monthly take-home salary — the amount credited to your bank account.
- Add other income (optional) — freelance, rental, side-business income.
- Add each EMI — personal loan, home loan, car loan, credit card minimum dues.
- Add rent (optional) — to see your full FOIR.
- Click "Check My DTI Ratio" to see results.
Example: Salary of ₹60,000
- Personal Loan EMI: ₹8,000
- Car Loan EMI: ₹7,500
- Credit Card Minimum: ₹3,000
- Total EMIs: ₹18,500
- DTI Ratio: 30.8% — within the safe zone (below 40%)
If this person added a new home loan EMI of ₹15,000, their DTI would jump to 55.8% — a red zone. Banks would likely reject this application.
DTI Risk Levels
- Below 30% — 🟢 Excellent. Comfortable borrowing capacity.
- 30% – 40% — 🟡 Moderate. Manageable but be cautious.
- 40% – 50% — 🟠 High. Banks may charge higher rates or reject applications.
- Above 50% — 🔴 Critical. Focus on paying off existing debts first.
Why Your DTI Matters
- Loan approvals — banks check DTI/FOIR before approving any new loan
- Interest rates — lower DTI often means better rates
- Financial health — high DTI leaves no room for emergencies
- Cash flow — knowing your DTI helps you budget and plan
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