What Is Debt-to-Income Ratio (DTI)?
From the SB Advisors Academy money glossary · Free, no signup
The percentage of your gross monthly income that goes toward debt payments. Lenders use this to evaluate your ability to handle new debt.
A worked example
You earn $5,000 per month and pay $1,000 toward debts. Your DTI is 20%. Most lenders want to see this below 43%.
Category
Part of the "Credit and Debt" group in the money glossary.