Loans

Debt-to-Income Ratio (DTI)

Monthly debt payments divided by gross monthly income, expressed as a percentage. Lenders use DTI to assess borrowing capacity. Most mortgages require DTI below 43%.

Related Terms

Gross Income

Related Calculators

House Affordability Calculator
Mortgage Calculator

Understanding Debt-to-Income Ratio (DTI)

Debt-to-Income Ratio (DTI) is a key concept in loans. Understanding this term helps you make more informed financial decisions. Use our related calculators above to see how debt-to-income ratio (dti) affects your specific situation.