Debt-to-Income Ratio
Also known as: DTI Ratio Formula
DTI = \frac{\text{Total Monthly Debt}}{\text{Gross Monthly Income}} \times 100
DTI = (Total Monthly Debt / Gross Monthly Income) × 100What It Calculates
Measures the percentage of your gross monthly income that goes toward paying debts. Lenders typically want DTI below 43% for mortgage approval.
variables
| Symbol | Name | Description |
|---|---|---|
| DTI | Debt-to-Income Ratio | Percentage of gross income that goes to debt payments |
Worked Examples
1
DTI = 2000 / 6000 × 100 = 33.3%Result: 33.3%
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