Your Debt-to-Income (DTI) ratio is a key financial metric that compares your total monthly debt payments to your gross monthly income. It helps lenders assess your ability to manage monthly payments and repay debts.
Your debt-to-income (DTI) ratio is a key financial metric that compares your total monthly debt payments to your gross monthly income. It's expressed as a percentage and helps lenders assess your ability to manage monthly payments and repay debts.
Many lenders prefer a DTI at or below about 36%, and 43% is a common upper limit for mortgages. Requirements differ by lender and loan type.
DTI = total monthly debt payments divided by gross monthly income. The color bands show common lender guidelines and are not approval criteria. This calculator is for educational purposes and is not financial advice.
