Debt-to-Income Ratio Calculator
Your debt-to-income (DTI) ratio is one of the key metrics lenders use to assess affordability. Enter your gross monthly income and total monthly debt commitments — including mortgage, loans, and credit cards — to see your DTI and what it means for your borrowing power.
How it's calculated
DTI = (Total monthly debt payments ÷ Gross monthly income) × 100
Frequently Asked Questions
- What counts as debt for the DTI calculation?
- All regular monthly debt commitments count: mortgage or rent, personal loans, car finance, credit card minimum payments, student loans, and any other fixed repayments. Do not include everyday living expenses such as utilities or food.
- What DTI ratio do mortgage lenders look for?
- Most UK lenders prefer a DTI below 35–40%. Above 43% is often considered high risk, and many lenders will decline applications above 50%. Some specialist lenders may accept higher ratios with compensating factors.
- How can I improve my DTI ratio?
- You can improve your DTI by paying down existing debts (reducing monthly obligations), increasing your income, or both. Clearing a credit card or loan before applying for a mortgage can significantly improve your ratio.