Indian Debt To Income Calculator — Calculations & Slabs for FY 2026-27

Your Debt-to-Income (DTI) ratio is a personal finance measure that compares your total monthly debt payments to your gross monthly income (before taxes). Lenders use DTI to assess your ability to manage monthly payments and evaluate how much additional debt you can safely take on.

The front-end DTI ratio (housing ratio) only measures the percentage of your gross income that goes toward housing expenses, such as mortgage principal, interest, property taxes, homeowners insurance (PITI), and HOA fees. The back-end DTI ratio (total ratio) measures the percentage of income that covers all recurring monthly debt payments, including housing expenses plus credit card minimums, car loans, student loans, and other personal liabilities.

The 28/36 rule is a standard guideline used by mortgage lenders to evaluate loan applications. It states that a household should spend a maximum of 28% of its gross monthly income on housing costs (front-end DTI), and a maximum of 36% on total debt service (back-end DTI). Borrowers within these limits are generally considered low-risk and qualify for better loan terms.

For back-end DTI: under 36% is considered excellent; 36% to 43% is acceptable (the maximum allowed by many conventional loans); 43% to 50% is a caution zone that may require strong credit or extra cash reserves; and over 50% makes it very difficult to secure traditional financing.

Lenders use gross income (income before taxes and deductions) because it is a stable, standard baseline that is easily verified across different employers. While your net 'take-home' pay is what you actually use to pay your bills, gross income provides a uniform standard for mortgage and debt-underwriting evaluations.