Start free
Buyer's Guidechevron_rightGlossary

Debt-to-income ratio

In plain English

Your monthly debt payments, including the new mortgage, divided by your monthly income before tax. Lenders use it to decide how much you can borrow. Often shortened to DTI.

By David Knorr · Last reviewed October 28, 2026

Why it matters to you

A lower ratio gives you more loan options. Paying down a car loan or a card balance before you apply can help.

calculateIncome of $6,000 a month. A $2,100 mortgage payment, a $300 car payment and $150 on cards add up to $2,550, or 42.5% of your income.
routeStep 1: Am I ready to buy?Pre-approvalDown payment

infoGeneral information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice.