Last updated: March 2, 2026

What Is a Debt-to-Income Ratio?

Formula

Your DTI ratio compares total monthly debt payments to gross monthly income, expressed as a percentage.

Lenders use DTI to evaluate your ability to manage payments. A lower DTI improves loan eligibility.

Common use cases:

  • Assessing mortgage eligibility
  • Evaluating financial health
  • Planning debt reduction

Frequently Asked Questions

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