Debt-to-Income Ratio
Debt-to-income ratio (DTI) is one of the most common numbers lenders and debt relief programs use to gauge whether your monthly debt load is manageable relative to what you earn.
What DTI Is and How It's Calculated
DTI is calculated as: total monthly debt payments ÷ gross monthly income. For example, $1,500 in monthly debt payments against $5,000 in gross monthly income is a 30% DTI.
Why Lenders and Debt Relief Programs Care About It
A high DTI signals less room in your monthly budget to absorb new debt or handle payment shocks. Some debt consolidation lenders use DTI as a qualifying factor — see our Debt Consolidation Requirements page for how this plays out in practice.
What's Generally Considered a Healthy Range
Commonly cited general guidance: below 36% is often considered manageable, 36-43% is a caution zone many lenders watch closely, and above 43% is often flagged as a risk factor. These are general reference points, not hard rules — actual thresholds vary by lender and loan type.
Want to calculate your own DTI? Try our DTI Calculator →