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Finance Calculators

Loan to Income Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Loan to income multiple

5.00

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Loan to Income Ratio Calculator

The Loan to Income Ratio Calculator works out your loan to income multiple in an instant. Enter loan amount and annual income and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the loan amount.
  2. Enter the annual income.
  3. Read off your loan to income multiple — the calculator updates automatically, with no button to press.

Formula

The Loan to Income Ratio Calculator uses the formula:

Loan to income multiple = Loan amount ÷ Annual income

Worked example

For example, with loan amount of 5,000,000 and annual income of 1,000,000, the loan to income multiple is 5.00.

Inputs used
Loan amount 5,000,000
Annual income 1,000,000
Results
Loan to income multiple 5.00

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It is the loan amount divided by annual income. A 5,000,000 loan on 1,000,000 income is a multiple of 5.

Mortgage lenders often cap borrowing around 4 to 5 times income, though it varies by lender and rules.

Loan to income compares the loan size with yearly income; debt to income compares monthly repayments with monthly income.

A high multiple means larger repayments relative to earnings, raising the risk if income falls or rates rise.

The Loan to Income Ratio Calculator uses the formula: Loan to income multiple = Loan amount ÷ Annual income. For example, with loan amount of 5,000,000 and annual income of 1,000,000, the loan to income multiple is 5.00.

Enter the loan amount. Enter the annual income. Read off your loan to income multiple — the calculator updates automatically, with no button to press.

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