Loan to Income Ratio
Free Loan to Income Ratio calculator with clear step-by-step results.
About Loan to Income Ratio
Lenders use the ratio of debt payments to income to gauge affordability.
Formula
Formula
LTI = monthly debt payments ÷ gross monthly income × 100
Worked example
With the default values below, Loan to Income Ratio returns Loan-to-Income Ratio of 24.0%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Monthly debt paymentsminimum 0 $
- 1,200 $
- Gross monthly incomeminimum 0 $
- 5,000 $
Results
- Loan-to-Income Ratio
- 24.0%
- Debt-to-Income Ratio
- 24.0%
- Income After Debt
- $3,800.00
Step by step
- 1Values used
- 2Formula
- 3Loan-to-Income Ratio= 24.0
- 4Debt-to-Income Ratio= 24.0
- 5Income After Debt= $3,800
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 1 decimal place, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Lenders use the ratio of debt payments to income to gauge affordability.
Why does this matter?
Lenders often cap this around 36–43% depending on the loan.