Does my solar loan change my Debt To Income (DTI) Ratio?

Jeffrey Loyd
2 min readJun 20, 2022
A man holding a solar panel on the roof of a house.

Yes — all loans or lease payments change your debt to income ratio. Let’s talk about how it works.

If your house payment is $1800 including property taxes and insurance. Your car payment is $300, your student loan payments are $200 and your credit card payments are $100, your total monthly payments are $2400 per month. All I did here was add them up.

Now, if your income is $7000 per month, your debt to income ratio is 34.3%. All we did was divide your total monthly payments by your total before tax monthly income. That is 2400/7000 = .343 or 34.3%.

Let’s say you want to get some solar panels (good idea) and you want to borrow or lease the panels. OK, there’s a payment right? If the payment is $250 per month, your debt to income ratio will go up.

Now your total payments per month are $2650. Your income is the same — $7000. Your debt to income ratio increased to 37.9%. We get that by dividing 2650 by your pretax monthly income of $7000–2650/7000 = .379 or 37.9%.

That’s all there is to it.

Want me to calculate your debt to income ratio and see if you qualify? Click here.

Jeffrey Loyd

Solar Specialist with Boundless Energy specializing in residential home solar solutions. Visit my website at