How to use it
- Enter Monthly debt payments.
- Enter Gross monthly income.
The formula
DTI = monthly debt ÷ gross monthly income.
Worked example
$2,000 debt on $6,000 income is a 33% DTI.
Frequently asked questions
What DTI is good?
Many lenders prefer 36% or lower.
Why does it matter?
High DTI can block loans or raise rates.
Tips
- Pay more than the minimum — it changes payoff dramatically.
- Attack the highest-rate balance first to save the most.
- Stop adding new charges while you pay debt down.
Key terms
- Minimum payment
- The smallest amount due each period.
- Utilization
- Balances divided by credit limits.
- Consolidation
- Combining debts into one loan.