What is a good debt-to-income ratio?

Debt service under 40% of net income is manageable. Total debt over 500% of annual income is high.

Banks use it for lending decisions and it shows your financial flexibility.

Debt-to-Income Calculator

Calculate your debt-to-income ratio (total debt vs annual income) and your monthly debt-service burden.

Total debt: 200,000 €

Gross annual income: 45,000 €

Debt service / month: 900 €

Net income / month: 2,800 €

444 %

Debt-to-income ratio

Debt / annual income	444 %
Debt-service ratio	32.1 %

ℹ️ A common guideline keeps debt-service under 40% of net income. The Finnish debt cap guideline is ~500% of annual income.

This debt-to-income calculator works out your total debt relative to your annual income and your monthly debt-service burden relative to your net income. Together these figures show how heavy your debt is compared with your ability to pay.

How the calculator works and what it’s for▾

How the ratio is calculated

The debt-to-income ratio is your total debt divided by your gross annual income, expressed as a percentage. It tells you how many years of gross income your debt corresponds to.

The debt-service ratio is your monthly debt payments divided by your net income. It shows how large a share of your take-home pay goes toward servicing debt.

What you enter and what you get

Enter your total debt, gross annual income, monthly debt service and net monthly income. The result gives the debt-to-income ratio as a percentage and the debt-service ratio as a percentage.

Both figures together give a fuller picture than either alone: one reflects the total amount of debt, the other the monthly burden.

Who it is for

The calculator is useful before applying for a new loan, when assessing your own ability to pay, and when you want to track your finances improving as debts are paid down.

Reading the result

In Finland a common guideline keeps debt-service under 40% of net income, and the debt cap guideline is around 500% of annual income. Treat high figures as a warning and consider lightening your debt.

🔄 Reviewed June 2026