GDS and TDS Calculator

Find out what your gross debt and total debt service ratios are.

What's GDS and TDS?

GDS and TDS stand for gross debt and total debt service ratios. They are percentages of income that cover your:

• GDS: Housing costs
• TDS: Housing costs and any other debts

Formulas for GDS/TDS

Gross debt service ratio is calculated by the sum of your housing costs, mortgage payments, property taxes, heating and condo fees divided by your annual income.

Total debt service ratio is calculated by the the gross debt above (housing, mortgage, property, etc.) + debt and loan payments divided by annual income.

Why are they important?

It let's you and lenders know how much you're able to borrow to purchase a home. Generally speaking, if you go over the limits below (39% and 44%) you should either save for a larger down payment, or pay off more of your outstanding debts. Your GDS and TDS are also used when granting a mortgage pre-approval.

What's a good GDS and TDS ratio?

Ideally your GDS and TDS should be below 35% and 42% respectively.

Given that Breezeful works with 100+ lender partners, we're able to support up to 45% and 47% for GDS and TDS ratios, and up to 50% for both under certain conditions e.g. a downpayment of 35%.