What is a good debt-to-income ratio?

36% or below is comfortable and is what most lenders prefer. Between 36% and 43% is often still approved. Above 43% is where most lenders stop.

Does this use gross or net income?

Gross, because that is what lenders use. Running it again on your take-home pay gives you a truer picture of what the payment will feel like.

What counts as an existing debt payment?

Loan and car payments, credit card minimums, student loans and any other required monthly repayment. Utilities, groceries and subscriptions are living costs, not debt.

Is rent or a mortgage included?

Lenders include housing in the total ratio. If you want the full lender view, add your rent or mortgage payment to the existing debt payments field.

Loan Affordability Calculator

Can you actually afford the repayment?

Lenders do not mainly ask what you earn. They ask what share of your income already goes to debt, and what share it would be once the new payment is added. That is your debt-to-income ratio, and it is the number that decides most applications.

Enter your income, what you already pay towards debt each month, and the loan you are considering. The result shows the payment, the resulting ratio and what is left over once every debt is paid.

Your numbers

Gross monthly income

Existing monthly debt payments

Loan amount

Interest rate (APR)

Loan term (years)

Debt-to-income ratio

16.9%

🇺🇸 US · USD

New monthly payment: $512.91
Total monthly debt: $1,012.91
Income left after debt: $4,987.09
Total interest over the loan: $5,774.80
Total repaid: $30,774.80
Lender view: Comfortable — most lenders look for 36% or less.

Estimates only. Results from this calculator are for general informational purposes and are not tax, legal, accounting or financial advice. Rates change and individual circumstances vary — confirm figures with the CRA, the IRS, your state or provincial authority, or a licensed professional before acting on them.

How it's calculated

Monthly rate = APR ÷ 12
Payment = Amount × r ÷ (1 − (1 + r)^−months)
Debt-to-income = (existing debt payments + new payment) ÷ gross monthly income

Lenders use gross income, before tax. Your own affordability check should use take-home pay, which is a stricter and more realistic test.

Frequently asked questions

What is a good debt-to-income ratio?: 36% or below is comfortable and is what most lenders prefer. Between 36% and 43% is often still approved. Above 43% is where most lenders stop.
Does this use gross or net income?: Gross, because that is what lenders use. Running it again on your take-home pay gives you a truer picture of what the payment will feel like.
What counts as an existing debt payment?: Loan and car payments, credit card minimums, student loans and any other required monthly repayment. Utilities, groceries and subscriptions are living costs, not debt.
Is rent or a mortgage included?: Lenders include housing in the total ratio. If you want the full lender view, add your rent or mortgage payment to the existing debt payments field.

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