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Discover your debt-to-income (DTI) ratio

Check your current debt level. Be prepared when you speak with lenders.

What is a debt-to-income (DTI) ratio?

Your debt to income (DTI) ratio is a number that compares your monthly, required debt payments to your monthly gross income. It helps lenders understand how much of your income is already allocated to debt obligations.

Your monthly debt payments may include:

  • credit card minimum payment
  • car loan
  • mortgage, including tax & insurance
  • student loan
  • alimony & child support
A House

Why is your DTI important?

Your DTI ratio is an important factor that lenders consider when evaluating your loan applications. It helps them assess your ability to manage and repay debt based on your income. Understanding your DTI helps you make informed financial decisions and improves your chance of getting approved for loans. By maintaining a healthy DTI ratio, you demonstrate financial stability and reduce the risk of being overwhelmed by debt.

Did you know?

Debt in the United States

+ 41%increase in cumulative household debt in the last 10 years.

$12 Trilliontotal mortgage balances.

$4.7 Trillioncumulative non-housing debt.

Source: U.S. Federal Reserve Bank of New York.