The Debt-to-Income (DTI) Ratio Calculator measures the percentage of gross monthly income consumed by recurring debt obligations, using the formula DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100. Lenders use this metric to evaluate loan eligibility and repayment capacity, with a DTI of 36% or below generally considered healthy. A lower DTI signals stronger financial health and typically results in better loan terms and interest rates.
