Debt-to-Income Ratio Calculator (DTI and FOIR)
Debt-to-Income Ratio Calculator (DTI and FOIR)
The share of your monthly income that already goes on loan EMIs and card payments, and the largest extra EMI that would keep it within a limit you choose.
Debt-to-income ratio
Income $1,00,000 a month, EMIs $25,000, card minimums $3,000, limit 40%
Debt-to-income ratio and the room for a new EMI
Room for a new EMI = limit × income − current payments
- DTI
- the share of income committed to debt payments; in India lenders call a similar measure FOIR, the fixed obligations to income ratio
Worked example
Income $1,00,000 a month, EMIs $25,000, card minimums $3,000, limit 40%
Payments = 25,000 + 3,000 = $28,000
DTI = 28,000 ÷ 1,00,000 = 28.0%
At 40%, payments may reach $40,000, leaving room for an extra EMI of $12,000
Where the thresholds come from
| Figure | Source | Status in 2026 |
|---|---|---|
| 36% total DTI | Fannie Mae Selling Guide, manual underwriting | Current (2 April 2025) |
| 45% total DTI | Fannie Mae, manual underwriting with credit score and reserves | Current |
| 50% total DTI | Fannie Mae, Desktop Underwriter | Current |
| 43% DTI | US General Qualified Mortgage rule | Replaced by a price-based test; mandatory from 1 October 2022 |
| 40–50% FOIR | Indian lenders’ practice (for example Kotak Mahindra Bank) | Varies by lender; not an RBI rule |
What lenders look at, and what the limits really are
Your debt-to-income ratio is the share of your monthly income already promised to lenders. The US Consumer Financial Protection Bureau defines it as all your monthly debt payments divided by your gross monthly income. With $25,000 of EMIs and $3,000 of card minimums on $1,00,000 a month, it is 28%. Indian lenders use a close cousin, the fixed obligations to income ratio (FOIR), which counts the EMIs and other fixed payments you already have, including the one you are applying for.
There is no single official limit. The 43% figure often quoted comes from the US qualified-mortgage rule, but the CFPB replaced that limit with a price-based test, compulsory since 1 October 2022; lenders must still weigh DTI, and set their own ceilings. Fannie Mae’s guide, which many US mortgages follow, sets 36% for manually underwritten loans, up to 45% with a strong credit score and reserves, and 50% through its automated system — those are the bands on this page. In India the RBI does not prescribe a FOIR; lenders commonly look for about 40–50%, and it varies with the lender, your income and the loan. Lenders also differ on whether they divide by gross or take-home income, and a ratio on take-home pay is higher for the same debts.
The most useful line is the room left for a new EMI under a limit you choose. Pick a limit that suits your budget, not just the highest a lender allows: the income left after debt still has to cover rent, food, insurance and saving. To turn that spare EMI into a loan amount, use the home loan eligibility calculator or the EMI calculator. If card balances are pushing the ratio up, the credit card payoff calculator shows how to clear them. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How is the debt-to-income ratio calculated?
Add up your monthly debt payments and divide by your gross monthly income. $28,000 of payments on $1,00,000 is 28%.
Is 43% still the maximum DTI for a US mortgage?
No. The 43% limit in the General Qualified Mortgage rule was replaced by a price-based test, mandatory from 1 October 2022. Lenders still consider DTI and set their own limits; Fannie Mae’s range is 36% to 50%.
What FOIR do Indian banks accept?
There is no RBI-set figure. Lenders commonly look for about 40–50%, varying with the lender, your income and the loan type.
How much more EMI can I take on?
Multiply your income by your limit and subtract what you already pay. At 40% of $1,00,000 with $28,000 of payments, the room is $12,000 a month.
Related calculators
References
- Consumer Financial Protection Bureau. What is a debt-to-income ratio? (last reviewed 28 August 2023): all your monthly debt payments divided by your gross monthly income; $2,000 ÷ $6,000 = 33%.
- Consumer Financial Protection Bureau. General QM Loan Definition final rule, announced 10 December 2020 (Regulation Z, 12 CFR 1026.43(e)(2)): replaced the 43% debt-to-income limit for General Qualified Mortgages with a price-based test; mandatory compliance from 1 October 2022. Lenders must still consider DTI or residual income.
- Fannie Mae. Selling Guide B3-6-02, Debt-to-Income Ratios (2 April 2025): maximum total DTI 36% of stable monthly income for manually underwritten loans, up to 45% with credit-score and reserve requirements; 50% for loans underwritten through Desktop Underwriter.
- Kotak Mahindra Bank. What is FOIR in Banking? Meaning, Full Form & Its Impact on Personal Loan Approval (accessed 22 September 2026): “Lenders prefer a FOIR in the range of 40-50%.”