What it does
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to judge whether you can take on a loan. Enter your income and monthly debts and get your DTI, and with a housing payment your total ratio.
The second part shows the typical lender limits for a home loan in Canada, the United States and the United Kingdom, and turns them into the most monthly payment and the biggest loan at your rate. To see the real payment on a loan, use the mortgage calculator, to bring the ratio down the loan payoff planner, and to check the payment fits your life the budget planner.
How to use it
- Type your gross monthly income (before tax) and the total of your monthly debt payments.
- Optionally enter a housing payment to see the total ratio.
- Choose the place, a rate and years to repay, and add property tax, heating and insurance each month.
- Read the most payment and loan. These are typical limits, not promises. Check with your lender.
What each setting does
- Canada: housing costs at most about 39% of income (GDS) and housing plus debts at most about 44% (TDS). The rate compounds twice a year.
- United States: the 28/36 rule of thumb. Many lenders go higher.
- United Kingdom: about 4.5 times yearly income.
- Property tax, heating and insurance count toward the housing ratio, so they reduce the payment you can take.
Worked example
Income 6,000 and debts 1,500 give a DTI of 25%. In Canada with 400 a month in tax and heat, the 44% limit allows 2,640 minus 1,500 minus 400, so 740 a month can go to the mortgage. Paying off debts raises that fast.
FAQs
Do lenders use gross or net income? Gross, before tax.
Does rent count as a debt? Not usually, because the new housing payment replaces it.
Are these limits the law? No. They are common lender limits, and rules change. Check with your lender.
Not financial or tax advice.
Where the numbers come from
- Canada: Gross Debt Service (about 39%) and Total Debt Service (about 44%) ratios: Canada Mortgage and Housing Corporation, cmhc-schl.gc.ca, and the Financial Consumer Agency of Canada, canada.ca/en/financial-consumer-agency. Reviewed 2026-11-10. Typical lender limits; check with your lender.
- United States: the 28/36 rule of thumb and the debt-to-income ratio: Consumer Financial Protection Bureau, consumerfinance.gov. Reviewed 2026-11-10. Many lenders allow more; check with your lender.
- United Kingdom: income multiple of about 4.5 times income: Bank of England Financial Policy Committee loan-to-income flow limit (bankofengland.co.uk) and Financial Conduct Authority affordability rules (fca.org.uk). Reviewed 2026-11-10. Check with your lender.
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Last updated 2026-11-10.