What Is Debt-to-Income Ratio?
The percentage of monthly income used to pay debts.
Definition
Debt-to-income (DTI) ratio is calculated by dividing total monthly debt payments by monthly gross income. Lenders use it to assess borrowing capacity. A DTI below 35% is generally considered manageable; above 43% is often where lenders start restricting new credit.
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Use these tools to work with debt-to-income ratio in your planning.
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Gross Salary
Your salary before taxes and deductions are removed.
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Your salary after all taxes and deductions are removed — the amount you actually receive.
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A tax paid on earned income, deducted from your salary or paid on profit.
Read definitionSocial Security
Compulsory contributions paid by employees and employers to fund public welfare programmes.
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