When to use this calculator
Compare monthly debt payments with gross monthly income. Lenders use different definitions and eligibility criteria; this is a ratio only.
Explore the loan & repayment calculators for other questions in this topic. For a related calculation, use the Equal Principal First Payment Calculator: Find the first payment under a constant-principal-reduction loan schedule.
PUTTING IT INTO PRACTICE
Debt to Income: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Monthly debt payments | 600 |
| Gross monthly income | 3,000 |
| Result | 20 % |
- Check the input labels and enter the example values above.
- Apply the relationship: Debt-to-income (%) = debt payments ÷ gross income × 100.
- The result is 20 %, rounded for display.
How to interpret your result
Lenders use different definitions and eligibility criteria; this is a ratio only.
Use a fixed-rate amortising model for loans repaid by equal monthly instalments. An interest-only payment leaves the principal outstanding. Fees and contractual APR calculations require more than the interest rate alone.
Frequently asked questions
Does a lower monthly payment mean a cheaper loan?
Not necessarily. Extending the term can lower payments while increasing total interest. Compare both monthly affordability and overall cost.
How do I use the debt to income calculator?
Enter monthly debt payments, gross monthly income. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Debt-to-income (%) = debt payments ÷ gross income × 100.
What should I check before using the result?
Lenders use different definitions and eligibility criteria; this is a ratio only.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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