Debt-to-Income Ratio

This ratio compares monthly debt payments to monthly gross income and provides the percentage of your gross monthly income that goes towards paying your monthly debt payments. 

How to Calculate

STEP 01 Add up your monthly debt payments, including credit cards, loans and mortgages.

STEP 02 Divide your total monthly debt payment amount by your monthly gross income.

STEP 03 The result will yield a decimal, so multiply the result by 100 to achieve your DTI percentage. 

DID YOU KNOW? Generally, 43% is the highest DTI ratio a borrower can have to qualify for a mortgage, but lenders prefer a ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. You can lower your DTI ratio by reducing your monthly recurring debt or increasing your gross monthly income.  

Brought to you by Brittany + Christa

We're not your typical real estate agents. As former city dwellers, we appreciate the qualities that make city lifestyle so unique, from the convenience of walking to your favorite restaurant or corner store to the vast and diverse cultural and entertainment activities. But we’ve also experienced the challenges and frustrations that are motivating you to seek change. During our transition from the city to the suburbs, we had the same thoughts, concerns and questions, prompting us to create a better way to navigate the suburban home search process for others.

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