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Debt-to-income ratio (DTI)

Definition

Your monthly debt payments as a share of your gross monthly income. Mortgage lenders use it to judge how much you can afford to borrow.

Formula

DTI = Total monthly debt payments ÷ Gross monthly income × 100

Example

$2,000 of monthly debt payments on $6,000 of gross monthly income is a DTI of about 33%.

Try the numbers

General educational information, not personal financial advice. See our disclaimer.

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