Free calculator

Is your debt load too heavy?

Your debt-to-income ratio is the quickest honest measure of how heavy your debt really is, and it's the same number lenders check. Enter your income and monthly payments to see where you stand and what to do next. Your numbers stay in your browser.

Your income

Use household income if you share your debts.

We'll convert it to monthly for you.

Mortgages count as debt. Rent doesn't, but we'll factor it in below.

Your monthly debt payments

Use your minimum payments.

Buy Now Pay Later, payday loans, support payments, money owed to family.

Don't include rent, utilities, groceries, phone bills, or insurance. Those are living costs, not debt.

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of your gross monthly income goes to debt payments

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    Let's lighten that load together

    A ratio in this range usually means debt is crowding out the rest of your life. Our credit counsellors help thousands of Canadians in exactly this spot. Together you'll go over your whole picture and find the option that fits, which could include a Debt Management Program that often reduces or eliminates interest. It's free, confidential, and nobody will judge you.

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    How this calculator works

    Your debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross (before-tax) monthly income. Debt payments include credit card minimums, loan and lease payments, lines of credit, and a mortgage payment if you have one. Rent, utilities, groceries, and insurance are living costs, not debt, so they're left out of the standard ratio.

    As a rule of thumb, 35% or less is considered healthy, most lenders get uncomfortable above about 43%, and 50% or more is widely seen as a sign of financial difficulty.

    Mortgage lenders in Canada use two stricter cousins of this ratio: GDS (your housing costs alone, usually capped at 39% for an insured mortgage) and TDS (housing plus all other debt payments, usually capped at 44%). If a mortgage application is your goal, those are the numbers a lender will calculate.

    One more thing: you may have seen headlines saying Canadian household debt is "177% of income." That's a different Statistics Canada measure comparing total debt owed to a full year of after-tax income. It isn't comparable to the monthly ratio this calculator shows.

    This calculator is a self-help tool for your independent use and is not intended to provide financial advice. Results are estimates based on the information you enter, and lenders may calculate ratios differently. For guidance on your specific situation, speak with one of our credit counsellors at 1-888-527-8999. Talking to us is free and confidential.

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