What Is Debt-to-Income Ratio?
Your debt-to-income (DTI) ratio is a personal finance measure that compares the amount of debt you have to your overall gross income. Lenders use this metric to assess your ability to manage monthly payments and repay the money you plan to borrow.
How to Calculate Your DTI
To calculate your DTI, add up all your monthly debt payments (rent/mortgage, car payments, student loans, minimum credit card payments) and divide by your gross monthly income. Multiply by 100 to get your percentage.