What is my debt-to-income ratio?

Debttoincome ratio (DTI) is a financial metric that measures the percentage of your monthly income that goes toward paying debts. It is calculated by dividing your monthly debt payments by your monthly gross income.

In India, the ideal debttoincome ratio varies based on various factors such as the type of debt, age, income, credit score, etc. However, a general guideline is to keep your debttoincome ratio below 40%. This means that your total debt payments should not be more than 40% of your gross monthly income.

However, it is important to note that a low debttoincome ratio does not necessarily mean you are financially healthy. It is important to also consider your overall financial situation, including your savings, investments, and longterm financial goals.