Understanding your debt-to-income (DTI) ratio is a key step in managing your finances and preparing for major financial decisions. Whether you’re applying for a loan, refinancing your mortgage, or just keeping track of your financial health, your DTI ratio helps you see how much of your monthly income goes toward debt payments.
Why is your DTI important?
Lenders use your DTI to assess your ability to handle monthly payments and repay borrowed money. A lower DTI is usually seen as a sign of financial stability, while a higher DTI could suggest you’re overextended.
Simply enter your monthly debt payments and your monthly income, and our DTI calculator will do the rest. This tool provides a quick and easy way to get a clear picture of your financial situation.
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