how to calculate dti
Here's how we make money. Debt-to-income ratio is a calculation lenders use along with credit history to evaluate whether a borrower can repay a loan. DTI divides the total of all monthly debt payments by gross monthly income. A borrower with rent of $1,000, a car payment of $300, a minimum credit card payment of $200 and a gross monthly income of $6,000 has a debt-to-income ratio of 25%. A debt-to-income ratio of 20% or less is considered low.