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The share of your gross monthly income that goes to debt payments.
Debt-to-income ratio divides your total monthly debt payments — mortgage, car, student loans, minimum card payments — by your gross monthly income. Lenders use it to judge how much new debt you can handle; under 36% is generally considered healthy and above 43% makes qualifying for a mortgage difficult.
$2,000 of monthly debt payments on $6,000 of gross income is a 33% DTI.
Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →