How to Calculate DTI

Debt-to-income, or DTI ratio comes from dividing your monthly debt payments by your monthly gross income.  

The ratio is expressed as a percentage, and lenders use it to determine how well you manage monthly debts and if you can afford to repay a loan.

Generally, lenders view consumers with higher DTI ratios as riskier borrowers. 

To calculate your debt-to-income ratio, add up all of your monthly debts – rent or mortgage payments, student loans, personal loans, auto loans, credit card payments, child support, alimony, etc. – and divide the sum by your monthly income. 

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