What DTI measures
DTI is all monthly debt payments divided by gross monthly income. Housing, car loans, student loans, cards and other debts all count.
Many lenders look for 36% or less in total, with housing at or below 28%. Above that, a car loan becomes harder to place or more expensive.
Worked example
On £6,000 a month with £1,500 housing, £400 car, £250 student and £100 card payments, total debts are £2,250 and DTI is 37.5%.
Housing is 25% of income. At a 36% limit there is no room left: the budget is £90 a month short.
Improving the ratio
Paying down a card or clearing a small loan lowers the monthly obligations and can move you into a better tier.
A larger deposit reduces the amount financed, which lowers the payment and the DTI.
Inputs for the car loan debt to income calculator
Gross monthly income
Income before tax, including regular overtime if it is reliable.
Housing payment
Rent or mortgage payment each month.
Car payment
The car loan or lease payment you are considering.
Student loan payment
The monthly student loan instalment.
Credit card payments
Minimum payments across your cards.
Other debts
Any other regular debt payments.
Maximum DTI
The limit you want to test, commonly 36%.
CALCULATOR QUESTIONS
Car loan debt to income calculator questions
What is a good DTI?
36% or below in total is a common target; under 28% for housing alone.
Does rent count?
Yes, housing costs are included in the total.
Is DTI the only test?
No. Lenders also check credit history, deposit and affordability.
How do I lower it quickly?
Clear a small balance or reduce the car payment with a bigger deposit or longer term.