Debt-to-Income Ratio Calculator
Calculate your DTI ratio to assess loan eligibility and financial health.
Calculate Your DTI Ratio
DTI Analysis
Monthly gross income—
Total monthly debt—
Debt-to-Income ratio—
Remaining income—
Understanding DTI ratio
Debt-to-Income ratio shows what percentage of your income goes toward debt payments. Banks use this to assess loan eligibility.
DTI formula:
DTI guidelines:
• 0-28%: Excellent - Easy loan approval
• 29-36%: Good - Most loans approved
• 37-43%: Fair - Some loans may be difficult
• 44-50%: Poor - Hard to get new loans
• Above 50%: Very risky - Financially stressed
What counts as debt:
✓ Home loan/rent, car loan, personal loans
✓ Credit card payments, student loans
✗ Utilities, groceries, entertainment (not counted)
Bank limits: Most banks in Nepal prefer DTI under 40-50%
DTI = (Total Monthly Debt / Monthly Gross Income) × 100DTI guidelines:
• 0-28%: Excellent - Easy loan approval
• 29-36%: Good - Most loans approved
• 37-43%: Fair - Some loans may be difficult
• 44-50%: Poor - Hard to get new loans
• Above 50%: Very risky - Financially stressed
What counts as debt:
✓ Home loan/rent, car loan, personal loans
✓ Credit card payments, student loans
✗ Utilities, groceries, entertainment (not counted)
Bank limits: Most banks in Nepal prefer DTI under 40-50%
FAQs
What is a good DTI ratio?
Below 36% is considered good. Under 28% is excellent. Above 43% may make loan approval difficult.
Does rent count in DTI?
Yes, if you're applying for a home loan. Lenders want to see if you can afford a mortgage in addition to other debts.
How can I improve my DTI?
1) Pay off debts, 2) Increase income, 3) Avoid new loans, 4) Make extra payments on high-interest debt.
Do utilities count in DTI?
No, only debt obligations count (loans, credit cards). Regular expenses like utilities, groceries don't count.
Can I get a loan with 50% DTI?
Difficult but possible. You may need strong credit score, stable job, or co-signer. Better to reduce DTI first.