The debt to income (DTI) ratio measures the percentage of your monthly debt payments to your monthly gross income. For example, if your monthly debt payments are $3,000 and your monthly gross income is $10,000, your DTI ratio is 30%. Lenders check this during the application process and typically require a DTI of 43-50% or lower.
How to Calculate the Debt to Income Ratio
Your debt to income (DTI) ratio is calculated by dividing your total monthly recurring debt payments by your gross monthly income.
