Debt-to-Income Ratio Calculator Canada

Before a lender asks what you want to buy, it asks what share of your income is already promised to other payments. That share is your debt-to-income ratio. This calculator totals your monthly debt payments against your gross monthly income and shows the percentage Canadian lenders use to judge you.

Gross income per month (before tax) ($)Rent or mortgage payment per month ($)Car loan or lease per month ($)Credit card minimums per month ($)Student / personal loan payments per month ($)Other monthly debt payments ($)

For a mortgage application, lenders use their own GDS and TDS definitions (housing costs, then all debts) and often calculate card payments at 3% of the balance rather than the minimum. This all-in ratio is the quick personal-health version.

How it works

In the example, $2,200 of monthly payments on $6,500 of gross income gives a 33.85% ratio: comfortably inside the range most lenders accept for the total debt load. Mortgage rules are stricter and more specific, with total debt service capped at 44% for insured mortgages, but the direction is the same: every payment you retire buys back borrowing room and budget room at once.

Watch what counts. Child support and alimony payments count as debts. A co-signed loan counts against you even if someone else pays it. And card minimums in this quick ratio understate what a mortgage lender will assume, which is typically 3% of the outstanding balance.

Worked example

The calculator’s own output for $2,200 of monthly debt payments on $6,500 of monthly gross income:

Item	Amount
Monthly payments: rent + car + cards + loans	$1,500.00 + $450.00 + $100.00 + $150.00 = $2,200.00
Gross monthly income	$6,500.00
Debt-to-income ratio	33.85%
Lender view	Within the range most lenders like (36% or less)

Frequently asked questions

What is a good debt-to-income ratio in Canada?

For all debts together, 36% or less is a widely used comfort line, and mortgage lending effectively caps total debt service at 44% (insured) including housing. Below 20% leaves real room to save; above 44%, new lending is difficult.

Is DTI calculated on gross or net income?

Lenders use gross (before-tax) income for GDS and TDS ratios, which is what this calculator uses. For your own budgeting, running it on take-home pay gives a stricter, more honest picture.

What counts as a debt payment?

Rent or mortgage, property tax and heating (for mortgage ratios), car payments, loan payments, credit card minimums (or 3% of balance in mortgage underwriting), support payments, and co-signed obligations.

How do I lower my DTI quickly?

Retire the smallest payment entirely (frees its whole monthly amount), avoid new financing before a mortgage application, and remember a raise or a working partner’s income changes the denominator too.

Is DTI the same as GDS and TDS?

They are cousins. GDS counts only housing costs against gross income (39% insured cap). TDS counts housing plus all debts (44% insured cap). This calculator’s all-in ratio is closest to TDS but includes rent for non-homeowners.

More free calculators

For education only. This calculator gives estimates, not financial, tax or legal advice. Figures use 2026 rates where a rate is built in; confirm your own numbers before making a decision.