What is Debt-to-Income Ratio?

Your total monthly debt payments divided by your gross monthly income, used by lenders to assess borrowing capacity. Lenders generally want total DTI at or below 36–43%, with housing alone under 28%. A lower DTI improves both your approval odds and the rate you’re offered.

Credit & Debt

Debt-to-Income Ratio (DTI)

Your total monthly debt payments divided by your gross monthly income, used by lenders to assess borrowing capacity.

What does debt-to-income ratio mean?

Lenders generally want total DTI at or below 36–43%, with housing alone under 28%. A lower DTI improves both your approval odds and the rate you’re offered.

Put it to use

Debt to Income Ratio Use this calculator to determine your debt to income ratio, an important measure in determining your ability to get a loan. Mortgage Qualifier Calculator Can you buy your dream home? Find out just how much you can afford!

Related terms

Credit Score Gross vs Net Income

All glossary terms