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Debt-to-Income Ratio (DTI)
Definition
Debt-to-Income (DTI) ratio is the percentage of your gross monthly income that goes toward paying your monthly debt payments and is used by lenders to determine your borrowing risk.
Example
"If you pay $2,000 a month for your mortgage, auto loan, and credit cards, and you earn $6,000 a month gross, your DTI is 33%."