TDSR Calculator

Managing debt is a critical aspect of financial health, whether for individuals or businesses. One key metric used to evaluate financial stability is the Total Debt Service Ratio (TDSR). The TDSR is a measure of the proportion of an individual’s or entity’s income that is used to service debt payments. Our TDSR Calculator is a handy tool designed to help you quickly and accurately determine your TDSR, giving you a clear picture of your debt obligations relative to your income.


The TDSR is an essential financial metric for several reasons:

  1. Financial Health: It provides insight into your financial health by showing how much of your income is dedicated to debt payments.
  2. Loan Approval: Lenders often use TDSR to assess loan eligibility, making it crucial for obtaining credit.
  3. Debt Management: Helps in managing and planning your debt repayments effectively.
  4. Budget Planning: Assists in creating a balanced budget by understanding debt obligations.
  5. Risk Assessment: Indicates financial risk levels, guiding decisions on additional borrowing.
  6. Investment Decisions: Influences investment decisions by providing a clear debt-to-income ratio.
  7. Financial Planning: Useful for long-term financial planning and goal setting.
  8. Credit Score Impact: Affects your credit score as a high TDSR may indicate financial stress.
  9. Economic Stability: Important for assessing the economic stability of individuals and entities.
  10. Regulatory Compliance: In some jurisdictions, maintaining a healthy TDSR is required by financial regulations.

How to Use

Using the TDSR Calculator is simple:

  1. Input Total Monthly Debt: Enter your total monthly debt payments in dollars.
  2. Input Total Gross Income: Enter your total gross monthly income in dollars.
  3. Calculate: Click the “Calculate TDSR” button to compute the Total Debt Service Ratio.
  4. View Result: The TDSR will be displayed as a percentage, indicating the portion of your income used for debt payments.

FAQs and Answers

  1. What is TDSR?
    • The Total Debt Service Ratio (TDSR) is a measure of the percentage of income used to service debt payments.
  2. Why is TDSR important?
    • It helps assess financial stability and is used by lenders to determine creditworthiness.
  3. What is a good TDSR percentage?
    • A TDSR below 40% is generally considered good, indicating manageable debt levels.
  4. How does TDSR affect loan approvals?
    • Lenders prefer lower TDSRs as they indicate lower financial risk, improving chances of loan approval.
  5. Can I improve my TDSR?
    • Yes, by increasing income or reducing debt payments, you can improve your TDSR.
  6. Is gross income the same as net income?
    • No, gross income is the total income before deductions, while net income is what remains after deductions.
  7. Does TDSR include all types of debt?
    • Yes, TDSR includes all monthly debt obligations such as loans, credit cards, and mortgages.
  8. Why is a high TDSR a concern?
    • A high TDSR indicates a significant portion of income is used for debt, which can signal financial stress.
  9. Is TDSR relevant for businesses?
    • Yes, businesses also use TDSR to manage debt and ensure financial stability.
  10. How often should I check my TDSR?
    • Regularly monitoring your TDSR, especially before taking on new debt or making significant financial decisions, is advisable.


The TDSR Calculator is a vital tool for anyone looking to manage their debt and maintain financial health. By providing a clear picture of how much of your income is dedicated to debt payments, it helps in making informed financial decisions, planning budgets, and achieving long-term financial goals. Whether you’re an individual seeking to understand your personal finances better or a business aiming to maintain financial stability, the TDSR Calculator offers a simple yet powerful way to assess and manage your debt obligations. Use it regularly to ensure you’re on the right track towards financial well-being.