Financial Expertise 2026 7 min read Published on 08 March 2026

Debt-to-Income Ratio and Disposable Income: Official Calculation Methods and Banking Standards

HCSF

Saratabank Editorial Team

Credit Expert • Updated on 08 March 2026

The debt-to-income ratio and disposable income are the two key indicators scrutinised by all credit institutions before granting personal financing. Governed by the recommendations of the Haut Conseil de Stabilité Financière (HCSF), these ratios make it possible to assess your repayment capacity, secure your borrowing project and avoid any situation of over-indebtedness. This guide details their official calculation methods and the thresholds not to be exceeded in 2026.

1. The debt-to-income ratio: definition and essential calculation

The debt-to-income ratio measures the share of your stable income allocated to repaying your current financial commitments. It is the primary criterion for banking eligibility.

📐 Official calculation formula:

Debt-to-income ratio = (Total monthly debt payments / Total net regular income) x 100

Result expressed as a percentage. The regulatory limit is generally set at 35% since 2021.

This simple calculation provides an instant view of your banking solvency. It is systematically calculated during your online simulation with Saratabank.

2. The 35% limit: the golden rule set by the HCSF

Since the recommendations of the Haut Conseil de Stabilité Financière (HCSF) came into force on 1 January 2021, banks must ensure that the debt-to-income ratio does not exceed 35% of net income before insurance, and 35% including borrower insurance.

🚨 A flexible threshold of 20% of files

Banking institutions are authorised to exceed this 35% limit for 20% of their credit portfolios, mainly to finance first-time buyers or investors with significant assets.

⏳ Maximum term of 25 years (+ 2 years)

In addition to the ratio, the HCSF caps the loan term at 25 years, extendable by 2 additional years in case of off-plan purchase or major works (27 years maximum).

🎯 A strong signal of financial health

Staying below 33% is considered ideal for maintaining a comfortable disposable income and securing approval of your application.

3. What income and expenses are included?

To establish your debt-to-income ratio fairly, credit institutions take into account only certain types of income and expenses:

Income included (numerator)

✓ Net salaries (permanent contract, fixed-term contract with history) and regular bonuses
✓ Self-employed income (average over 2 to 3 years)
✓ Rental income (generally weighted at 70%)
✓ Pensions, retirement income and certain allowances

Commitments included (denominator)

✕ Monthly instalments of all current consumer and mortgage loans
✕ Future monthly payment of the loan applied for
✕ Rent if you remain a tenant after the project (depending on bank)
✕ Alimony and certain recurring obligations

4. Disposable income: the second fundamental criterion

Beyond the debt-to-income percentage, banks analyse the actual amount left to live on after all fixed expenses. This disposable income must be sufficient to cover daily needs according to household composition and place of residence.

Household composition	Standard disposable income outside metropolitan areas	Île-de-France (Paris region)	Comfortable / Sufficient
Single person, no children	€700	€900	> €1,200
Couple, no children	€1,000	€1,300	> €1,800
Couple with 1 child	€1,200	€1,600	> €2,100

*Amounts provided as indicative benchmarks, variable according to banking institutions and individual circumstances.

5. 4 practical tips to optimise your banking profile

If your debt-to-income ratio slightly exceeds the standards, several levers allow you to improve your eligibility:

1. Debt consolidation

Group your existing loans to reduce your cumulative monthly payments and immediately lower your debt-to-income ratio.

2. Increase the household down payment

Adding personal savings or an additional co-borrower can increase total income considered and reduce the amount to be financed.

3. Extend the repayment term

Extending the term (within the 25-year limit) reduces the monthly instalment and mechanically lowers the debt-to-income ratio.

4. Repay revolving credits first

Revolving facilities heavily impact your monthly commitments for limited capital. Repaying them as a priority improves your profile.

FAQ: Debt-to-Income Ratio & Disposable Income

❓ Are social benefits counted as income?

Generally, family allowances, housing benefits and temporary allowances are not considered stable income and are excluded from the calculation of your debt-to-income ratio.

❓ Why is my file refused with a 36% ratio?

The HCSF threshold of 35% is now a prudential rule strongly applied by banks. Above this rate, only 20% of files (mainly high-income or first-time buyers) may benefit from a derogation, which makes refusal frequent beyond 35%.

❓ Do you take future rental income into account?

Yes, as part of a rental investment, we include rental income weighted at 70% to cover potential vacancy or unpaid rent. It is added to your existing income to assess your borrowing capacity.

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