How to Calculate Debt-to-Income Ratio for Loans

Understanding Debt-to-Income Ratio (DTI) Definition of Debt-to-Income Ratio The Debt-to-Income Ratio (DTI) is a financial measure that compares an individual’s total monthly debt payments to their gross monthly income. Expressed as a percentage, it helps lenders assess an applicant’s ability to manage monthly payments and repay debts. A lower DTI indicates that a person has […]