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    Debt-to-Income Ratio Calculator

    Your debt-to-income (DTI) ratio is one of the most important numbers lenders look at. Calculate yours instantly and understand what it means for your borrowing options.

    Before taxes and deductions

    Monthly Debt Payments

    $
    $
    $
    $

    Your DTI Ratio

    0.0%

    Enter your income
    0%35%43%60%+

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    What Is the Debt-to-Income Ratio?

    Your debt-to-income (DTI) ratio measures the percentage of your gross monthly income that goes toward debt payments. It's calculated by dividing your total monthly debt obligations by your gross monthly income, then multiplying by 100.

    Formula: DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

    Canadian lenders use two types of DTI ratios: the Gross Debt Service (GDS) ratio, which includes only housing costs, and the Total Debt Service (TDS) ratio, which includes all debts. For personal loans, lenders focus primarily on TDS — that's what this calculator computes.

    Why does DTI matter so much? Even with a perfect credit score, a high DTI tells lenders you may struggle with additional debt payments. Conversely, a low DTI with mediocre credit can still result in approval because lenders see you have room in your budget for new obligations.

    DTI Ranges and What They Mean

    Under 35% — Healthy

    You have strong borrowing capacity. Most lenders will view your debt load favourably and offer competitive rates. You're well-positioned for loan approval.

    35%–43% — Moderate

    Acceptable for many lenders, but you're approaching the limit. Some premium rate tiers may not be available. Consider reducing existing debt before taking on new obligations.

    Over 43% — High

    Most conventional lenders will decline applications with DTI above 43%. Alternative lenders may approve, but at significantly higher rates. Focus on paying down existing debt to bring your ratio into a healthier range.

    How to Improve Your DTI Ratio

    • 1Pay down high-balance credit cards first — even reducing balances to 30% of your limit improves both DTI and credit score
    • 2Increase your income through overtime, a side gig, or negotiate a raise — higher income directly lowers your DTI
    • 3Consolidate multiple debts into a single lower-payment loan to reduce total monthly obligations
    • 4Avoid taking on new debt before applying — even small monthly payments add up in DTI calculations
    • 5Pay off any debts with fewer than 10 payments remaining — lenders may exclude debts about to be paid off
    • 6If you have a co-signed debt that someone else actually pays, ask that lender to show the other person as primary borrower

    Frequently Asked Questions

    More Free Tools

    Sources & References

    1. 1
      canada.caMortgage qualification — TDS and GDS guidance
    2. 2
      osfi-bsif.gc.caResidential Mortgage Underwriting Practices and Procedures (Guideline B-20)
    3. 3
      statcan.gc.caHousehold debt indicators

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    Know your DTI — now find out what rates and loans match your profile.