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Monthly debt payments

This tool provides planning estimates. Lenders may calculate ratios differently and consider many other factors including credit history, employment stability, and savings.

Disclosure This calculator is for guidance only and does not guarantee approval.

1. Enter or confirm your gross monthly income.
2. Add your monthly debt payments including rent or mortgage, loans, and minimums on revolving debt.
3. Click Calculate DTI to see your total monthly debt, DTI, housing ratio, and a visual breakdown.
4. Compare scenarios by adjusting values or selecting a preset to find a comfortable target ratio.

Tip If your DTI is high, try reducing balances, extending loan terms, or increasing income before applying.

What counts toward DTI

Most lenders include recurring monthly obligations such as rent or mortgage principal interest and property tax if applicable, condo fees where relevant, car payments or leases, student loans, personal loans, lines of credit interest and required payments, and credit card minimums. Utilities, groceries, and discretionary spending are usually excluded.

Front end vs back end ratios

The housing ratio sometimes called front end compares only your housing costs to gross income. The total DTI sometimes called back end includes all monthly debt. For unsecured personal loans, total DTI often matters more, though each lender sets its own guidelines.

What is a good DTI

Lower is better because it shows more room in your budget. A total DTI under about 36 percent is often considered strong, 36 to 43 percent moderate, and above that may be challenging depending on the application. Some lenders can approve higher DTIs when other strengths are present like excellent credit, stable income, or a co applicant.

Ways to improve your ratio

• Pay down revolving balances to reduce minimum payments.
• Consolidate high interest debt into a lower rate personal loan.
• Choose a longer term to reduce monthly payments while staying disciplined about total interest.
• Avoid taking on new debt before applying.
• Increase income or add a co applicant where allowed.

Why province matters

Cost of living and typical housing payments vary by province, which influences affordability. This calculator shows your province for context and reporting, though it does not change the math.

Understanding the trade off between monthly payment and total interest

Extending a loan term can improve your DTI by lowering the monthly payment, but it can also increase total interest paid over time. Use your DTI as one factor alongside payoff speed and total cost.

Frequently seen thresholds

• Housing ratio target often below the low thirties percent.
• Total DTI target often below about 40 to 45 percent for many unsecured products.
• Credit factors like utilization and history can offset or compound a borderline DTI.

Illustrative examples only. Lender criteria vary.

Do utilities and subscriptions count in DTI

No, lenders usually exclude variable living expenses and include only fixed monthly debt obligations.

Do I use gross or net income

DTI is typically calculated using gross income before tax. Some lenders may also review your budget using take home pay.

Are credit card balances or minimums used

Minimum required payments are included, not the entire balance.

How do lenders treat variable income

Many average variable income over a period for consistency. You may need to provide recent pay stubs and bank statements.

Can I qualify with a high DTI

Possibly, if other strengths are present. Reducing debt or consolidating can help.

What is PTI and why does it matter

PTI is payment to income for a specific new loan. Lenders consider both your total DTI and the PTI of the product you are applying for.