Debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. It's one of the first numbers personal-funding providers calculate, because it predicts whether a new payment fits your life.
The good news: it's a ratio you can influence from both directions.
The calculation
List your monthly debt payments : rent or mortgage, cards (minimums), vehicle payments, existing funding. Divide the total by gross monthly income (before taxes). That's your DTI. Providers typically want meaningful headroom below the top of the range they'll accept, and thresholds vary by provider and structure.
The two levers
Reduce the numerator: pay down balances (especially card minimums), retire small debts entirely, avoid new obligations before applying. Increase the denominator: documented income : which sometimes means simply documenting income you already have but haven't papered (side income, consistent overtime).
What DTI doesn't capture
DTI ignores your actual cost of living : childcare, medical, everything not a debt payment. So don't aim your budget at a DTI number; aim it at a monthly life that works, and the DTI usually follows.
Frequently Asked Questions
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If this topic relates to a funding need you have, you can begin a funding request through Kennify's financing partner at any time.