Your DTI ratio against affordability guidelines.
Debt-to-income ratio
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Net income (after PAYE)
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Debt vs net income
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Your breakdown
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One ratio every lender quietly runs
When you apply for a bond, a vehicle finance deal, or a personal loan in South Africa, the credit provider works out roughly what share of your income already disappears into debt repayments. That share is your debt-to-income ratio: total monthly debt repayments divided by gross monthly income. It is a blunt but powerful screen. A low ratio says you have room to take on more; a high one says you are already stretched and a fresh repayment could tip you over. This calculator gives you that number before the lender does, and it adds a useful second view by estimating your take-home after PAYE so you can see the squeeze on the money you actually live on.
The income tax this tool deducts to find net income uses the individual scale, with bands and rebates that are the figures this calculator applies and worth confirming with SARS. The 36 percent comfort line it draws is a widely used affordability convention, not a number written into law, so treat it as a guide rather than a hard rule.
Gross ratio versus the ratio that bites
There is a meaningful difference between measuring debt against gross income and measuring it against take-home. Lenders usually quote the gross ratio because gross is what appears on a payslip, but your repayments come out of net income, after tax has gone. The gap can be large at higher earnings. Looking at both numbers stops you from feeling comfortable on a gross ratio that turns uncomfortable once PAYE is stripped out.
Take someone earning R40,000 a month gross with R12,000 a month of debt repayments, under 65. Here is how the two ratios compare, using the rates this calculator applies for the tax estimate.
On gross income the ratio is a comfortable 30 percent, below the 36 percent line. Measured against the roughly R32,161 that actually lands after tax, the same repayments eat about 37 percent, nudging just over it. The chart shows both bars against the 36 percent marker.
Where the National Credit Act draws the line
South Africa does not leave affordability to the lender's discretion alone. Under the National Credit Act, a credit provider must perform an affordability assessment before granting credit and may not lend recklessly if it would leave you over-indebted, meaning unable to meet your obligations. There is no single statutory DTI cap, but the Act forces lenders to weigh your income, your existing commitments, and your living expenses. A high ratio on this calculator is a signal that an affordability assessment may go against you. The honest tip here is that the ratio measures only contractual debt repayments; it ignores rent, groceries, school fees, and transport, which an NCA assessment will count, so a borderline ratio is usually worse than it looks. If your number is climbing, the practical move is to clear the smallest balances first to free up the monthly commitment before applying for anything new.
Which debts should I include in the repayments figure?
Include the regular monthly repayments on all credit: your bond, vehicle finance, personal loans, credit card minimums, store accounts, and study loans. Leave out things that are not credit repayments, such as rent, medical aid, and groceries, because the ratio is specifically debt against income. Those living costs still matter for an NCA affordability check, but they are not part of this ratio.
Does a high ratio mean I will definitely be declined?
Not automatically, but it lowers your odds. Lenders read a stretched ratio alongside your credit record and disposable income, and the NCA requires them to refuse credit that would leave you over-indebted. A ratio above the 36 percent guide this tool uses is a flag to pause and reduce existing commitments before applying, rather than a guaranteed rejection.
Why does the tool also show net income?
Because your repayments are made from take-home pay, not gross. By estimating PAYE on the individual scale at the rates this calculator applies, it shows how much of your actual after-tax income the debt consumes, which is often a harsher and more honest picture than the gross ratio lenders headline.