What Is Debt to Income Ratio?

Debt to income ratio (DTI) compares your monthly debt payments to your gross monthly income. Lenders use it to evaluate mortgage affordability.

How Is DTI Calculated?

Add your monthly debt payments and divide by your gross monthly income. Then multiply by 100 to get a percentage.

What Is a Good DTI Ratio?

Most lenders prefer a DTI below 43%, though lower ratios may improve approval chances and loan terms.

Why DTI Matters for Mortgages

Your DTI ratio helps determine how much home you may qualify for and whether your finances can support a new mortgage payment.