Simple Debt-to-Income Ratio Calculator Canada: Calculate Your DTI

For anyone with debt, it’s important to stay on top of your debt-to-income (DTI) ratio. This calculation will tell you how much debt you have compared to your income and can help you determine whether you can afford to take on another loan.

Calculate Debt to Income Ratio

To use the debt-to-income ratio calculator, simply enter your monthly debt and income information into the fields provided.

The calculator will do the rest, and in just a few moments, you’ll know your debt-to-income ratio.

Keep in mind that a higher debt-to-income ratio may be more difficult to manage, so use this tool as one part of your overall financial planning.

Debt to Income Ratio Calculator

Excellent! While you should pay off your debt as soon as possible, this debt to income ratio should allow you to live the lifestyle you want without major constraints.
Healthy. You should avoid incurring more debts, and might have a problem getting approved for a mortgage or yet another loan. Still, you are in a relatively good situation.
Troubling. You probably won’t get approved for any additional loans; you should start working on a plan that will help you reduce your debts.
Dangerous. Such a debt to income ratio indicates financial trouble. You should devote as much money and energy as possible to pay off your loans.
Extremely Dangerous. More than half of your income is used to pay off debts and mortgages. If you’re not following a strict payment plan yet, don’t hesitate to consult a financial advisor and get professional help.

How to Calculate Debt to Income Ratio

If you’re thinking of taking out a loan, it’s important to know your debt-to-income ratio. This simple calculation will tell you how much of your income is going towards debt repayments and whether you can afford to take on another loan.

To calculate your debt-to-income ratio, simply divide your total monthly debt repayments by your gross monthly income.

For example, if you have monthly debt repayments of $1,000 and a gross monthly income of $3,000, your debt-to-income ratio would be 33%.

What is a Good Debt to Income Ratio, Canada?

Most lenders like to see a debt-to-income ratio of no more than 36%, so in this example, the borrower would probably be able to afford another loan.

However, it’s important to remember that everyone’s situation is different, so it’s always best to speak to a financial advisor before making any major decisions.


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