Income commitment
Type your monthly income, what you already pay each month in debts and the instalment you are considering, and see what share of your income they take. The levels quoted for your country are shown beside it as a reference, never as a rule.
What you earn and pay
R$
R$
The instalment you are considering
R$
- With the new instalment of R$ 700.00, your debt payments go from 18.00% to 32.00% of your income.
- That is above the 30% quoted as a reference.
- Staying at the reference leaves room for another instalment of up to R$ 600.00 on top of the payments you already have.
How income commitment works
What the page calculates
It divides what you pay each month in debts by your monthly income and shows the result as a percentage: that is the income commitment. If you enter a new instalment, it shows the percentage today and the one after it, what is left of your income and the largest new instalment that still fits within your country's reference. Beside it, it says which level the country's sources quote and where it comes from. The page describes; it does not say whether a loan would be approved or whether you should take it.
What you enter
- Monthly income: the one the country's level is measured on. In Brazil and the United States the sources speak of gross income, before taxes and deductions; the screen asks for exactly the one the country uses and says which it is.
- Other debt payments per month: instalments, card minimums and other loans you already pay.
- The new instalment (optional): the one you are thinking of taking on, on top of the others.
- Saved contracts: if you have an account, you can add the next instalment of each saved contract, in the same currency.
How the calculation works
The income commitment is the total paid each month divided by income. With a new instalment, it goes into the total once and the division is made again. What is left is the income minus that total: rent, food and every other expense are still to come out of it. The largest instalment that fits is the income times the reference level, minus what you already pay, cut down to the cent: adding exactly that leaves the share on the level, and one cent more takes it past. The comparison uses the exact amounts and not the rounded percentage: being exactly on the level counts as within, and a cent over counts as above.
An example with numbers
Gross income of R$ 5,000.00, R$ 900.00 already paid each month on debts and a new instalment of R$ 700.00, in Brazil, where the reference quoted is up to 30% of gross income.
| Measure | Today | With the new instalment |
|---|---|---|
| Payments per month | R$ 900.00 | R$ 1,600.00 |
| Share of income | 18.00% | 32.00% |
| Left of the income | R$ 4,100.00 | R$ 3,400.00 |
| Against the 30% reference | within | above |
30% of R$ 5,000.00 is R$ 1,500.00. With R$ 900.00 already going out, the largest new instalment that keeps everything within the reference is R$ 600.00; with the R$ 700.00 being considered, the share goes past 30% and reaches 32%. In the United States, with US$ 5,000.00 of gross income and US$ 2,300.00 of payments a month, the share is 46.00%: above the 36% reference and also above the 43% level the source mentions, with no room for another instalment. In Spain, with € 3,000.00 of gross income, 40% is € 1,200.00: with payments of € 1,200.00 the share is exactly 40.00%, on the level the Banco de España's statistics use, and with € 1,260.00 it becomes 42.00%.
Where the levels come from
None of them is a rule. In Brazil the level is market practice: banks and credit portals say they usually accept an instalment of up to about 30% of gross income, and there is no norm and no official page. In the United States it is consumer guidance: the CFPB's debt-to-income tool quotes 36% or less of gross income for homeowners and says some lenders go to 43% or higher. In Spain it is a statistic: the Banco de España counts the indebted households whose payments exceed 40% of gross income, without recommending a limit. The page shows the source beside the result, and a country with no level gets only the share and what is left.
Mistakes to avoid
- Typing net income where the level was measured on gross, or the other way round: the percentages stop being comparable.
- Forgetting a payment: the card minimum, the car instalment and the payroll loan all count.
- Treating the level as a limit: it is what a source quotes, and whoever grants credit looks at much more than this division.
- Counting a variable income as if it were fixed: use that of a typical month, and the lower the estimate, the more cautious the calculation.
- Adding contracts in different currencies: the page leaves them out and says how many.
What the page does not cover
It does not see rent, building fees, food, health or any other expense: only what you enter as a debt payment. It does not follow an instalment that changes over time (in a SAC contract the simulation uses the highest, the first one) or the income of more than one person unless you add it. What you type is not sent or kept: it stays on the page and goes when you reload. It is a calculation with the assumptions it states, not a recommendation.
Where to go next
The guide on income commitment explains where these levels come from and what the central bank's indicator shows. The exit plan page puts the debts in order when there are several, and the contract check page shows the real rate of what is being offered. The methodology page describes how the calculations are made.