Debt-to-income ratio (DTI) is a measure of how much of your monthly gross income is spent on debt payments. It is calculated by dividing your total monthly debt payments by your total monthly gross income. Lenders use DTI to assess your ability to repay a loan. A higher DTI means that you have less money available to repay debt, which can make it more difficult to qualify for a loan.
DTI is an important factor to consider when budgeting and managing debt. A high DTI can make it difficult to save money, qualify for loans, and reach your financial goals. It is important to keep your DTI as low as possible to improve your financial health.