{"id":47995,"date":"2023-11-16T12:08:30","date_gmt":"2023-11-16T20:08:30","guid":{"rendered":"https:\/\/financer.com\/?p=47995"},"modified":"2024-05-03T11:45:30","modified_gmt":"2024-05-03T18:45:30","slug":"what-is-debt-to-income-ratio","status":"publish","type":"wiki","link":"https:\/\/financer.com\/personal-finance\/articles\/what-is-debt-to-income-ratio\/","title":{"rendered":"What is a Debt-to-Income Ratio?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"What_is_a_Debt_to_Income_Ratio\">What is a Debt-to-Income Ratio?<\/h2>\n\n\n\n<p><strong>A debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. <\/strong>It represents how much of your income is already tied up in debt payments.<\/p>\n\n\n\n<p>Your debt-to-income ratio (DTI) is one of the most important numbers lenders look at when deciding whether or not to give you a loan. <\/p>\n\n\n<div class=\"fn_block block_fn_msg_box info\"><div class=\"fn_block__icon\"><\/div><h3 id=\"Pro_Tip\">Pro Tip<\/h3><p>Aim for a Debt-to-Income (DTI) ratio <strong>below 36%<\/strong> when seeking loans or credit lines. A lower DTI is favorable for loan approval and can secure better interest rates.\u00a0<\/p><\/div>\n\n<div class=\"wp-block-image is-style-default shortcode-no\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/financer.com\/app\/uploads\/sites\/11\/2023\/11\/debt-to-income-ratio1.png\" alt=\"visual representation of the debt to income ratio calculation\" class=\"wp-image-48578\" width=\"659\" height=\"526\" srcset=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/11\/debt-to-income-ratio1.png 549w, https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/11\/debt-to-income-ratio1-300x240.png 300w\" sizes=\"(max-width: 659px) 100vw, 659px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"To_calculate_your_debt_to_income_ratio\">To calculate your debt-to-income ratio:<\/h2>\n\n\n<div class=\"howto_desc\"><div class=\"single-article__steps-toc_step\"><a href=\"https:\/\/financer.com\/?post_type=wiki&amp;p=47995&amp;preview=true#step_1\">1. List Your Monthly Debt Payments<\/a><\/div>\n<div class=\"single-article__steps-toc_step\"><a href=\"https:\/\/financer.com\/?post_type=wiki&amp;p=47995&amp;preview=true#step_2\">2. Add Up Your Debts<\/a><\/div>\n<div class=\"single-article__steps-toc_step\"><a href=\"https:\/\/financer.com\/?post_type=wiki&amp;p=47995&amp;preview=true#step_3\">3. Find Your Monthly Income Before Taxes<\/a><\/div>\n<div class=\"single-article__steps-toc_step\"><a href=\"https:\/\/financer.com\/?post_type=wiki&amp;p=47995&amp;preview=true#step_4\">4. Divide Total Monthly Debt by Monthly income<\/a><\/div><\/div><div class=\"single-article__steps\">        <style>\n            .single-article__steps-items .single-article__steps-content {\n                background: #FFFFFF;\n                padding: 30px;\n                margin: 0 0 30px 0;\n                border-radius: 10px;\n                box-shadow: 0 0 10px 0 rgba(0, 0, 0, 0.14);\n                width: calc(100% - 5px);\n            }\n            .single-article__steps-items .single-article__steps-counter {\n                padding: 5px 20px;\n                border-radius: 3px;\n                background-color: #F5E7D8;\n                display: inline-block;\n                top: 15px;\n                left: -30px;\n                position: relative;\n                font-size: 16px;\n                font-weight: 600;\n            }\n\/*            .single-article__steps-items::before {\n                content: \"\";\n                position: absolute;\n                top: 20px;\n                left: 0;\n                height: calc(100% + 40px);\n                border-left: 2px dashed #e0e0e1;\n            }*\/\n            .single-article__conclusion-tag {\n                padding: 5px 20px;\n                border-radius: 3px;\n                color: #000000;\n                background-color: #F5E7D8;\n                display: inline-block;\n                top: 15px;\n                left: -30px;\n                position: relative;\n                font-size: 16px;\n                font-weight: 600;\n            }\n            .single-article__conclusion-item {\n                background: #FFFFFF;\n                padding: 30px;\n                margin: 0 0 30px 0;\n                border-radius: 10px;\n                box-shadow: 0 0 10px 0 rgba(0, 0, 0, 0.14);\n            }\n        <\/style>\n        <div class=\"single-article__steps-items\"><div class=\"single-article__steps-counter\" id=\"step_1\">Step 1<\/div><div class=\"single-article__steps-content\"><h3 id=\"List-Your-Monthly-Debt-Payments\">List Your Monthly Debt Payments<\/h3><ul>\n<li>Write down each monthly payment you make for debts. This includes credit card minimum payments, car loan payments, student loan payments, <a href=\"https:\/\/financer.com\/loans\/mortgage\/\">mortgage<\/a> or rent, and any other loans or financial obligations you pay regularly.<\/li>\n<li><strong>Tip:<\/strong> Check your bank statements or online accounts to make sure you don\u2019t miss anything.<\/li>\n<\/ul><\/div><div class=\"single-article__steps-counter\" id=\"step_2\">Step 2<\/div><div class=\"single-article__steps-content\"><h3 id=\"Add-Up-Your-Debts\">Add Up Your Debts<\/h3><ul>\n<li>Total the monthly payments you&#8217;ve listed. Make sure you only add the monthly payment amounts, not the total debt owed.<\/li>\n<li><strong>Tip:<\/strong> Use a calculator to avoid errors, especially if you have multiple debts.<\/li>\n<\/ul><\/div><div class=\"single-article__steps-counter\" id=\"step_3\">Step 3<\/div><div class=\"single-article__steps-content\"><h3 id=\"Find-Your-Monthly-Income-Before-Taxes\">Find Your Monthly Income Before Taxes<\/h3><ul>\n<li>Determine how much you earn in a month <strong>before any taxes<\/strong> or deductions are taken out. This is your gross income.<\/li>\n<li><strong>Tip:<\/strong> If your income varies (like if you&#8217;re a freelancer), average your income over the past 3-6 months for a more accurate figure.<\/li>\n<\/ul><\/div><div class=\"single-article__steps-counter\" id=\"step_4\">Step 4<\/div><div class=\"single-article__steps-content\"><h3 id=\"Divide-Total-Monthly-Debt-by-Monthly-income\">Divide Total Monthly Debt by Monthly income<\/h3><ul>\n<li>Divide the total of your monthly debts by your gross monthly income. This will give you a decimal number.<\/li>\n<li>Multiply this decimal by 100 to convert it into a percentage.<\/li>\n<\/ul>\n<p><strong>Read More<\/strong>: <a href=\"https:\/\/financer.com\/wiki\/gross-income-vs-net-income\/\">Gross Income vs Net Income<\/a><\/p><\/div><\/div>            <div class=\"single-article__conclusion\">\n                            <\/div>\n            <\/div>\n\n<div class=\"fn_block fn-comparison-table\">                                    <h3 class=\"comparison-table__title-main\">Best Loans for High Debt-To-Income Ratio<\/h3>\n                                            <div class=\"comparison-table__binder\">\n                <div class=\"comparison-table__dots is-hidden-tablet\">\n                    <div class=\"comparison-table__dot comparison-table__dot--big\"><\/div>\n                    <div class=\"comparison-table__dot\"><\/div>\n                    <div class=\"comparison-table__dot\"><\/div>\n                <\/div>\n                <div class=\"comparison-table__relative is-content\">\n                    <div class=\"comparison-table__scroll is-content\">\n                        <table class=\"comparison-table is-content\" js-data-comparison-table=\"\"\n                               js-data-affiliate-on-top=\"false\">\n                            <thead>\n                                <tr>\n                                    <th>\n                                        <span data-sorting=\"logo\"  data-sorting-type=\"asc\" class=\"comparison-table__title\">\n                                            Company                                        <\/span>\n                                    <\/th>\n                                                                        <th>\n                                        <span data-sorting=\"rating\" data-sorting-type=\"asc\" class=\"comparison-table__title\">\n                                            Overall Rating                                        <\/span>\n                                    <\/th>\n                                    \n                                    <th> <span data-sorting=\"interest-rate-range\" data-sorting-type=\"asc\" \n                    class=\"comparison-table__title\"\n                    title=\"Interest\">Interest<\/span><\/th><th> <span data-sorting=\"loan-amount-range\" data-sorting-type=\"asc\" \n                    class=\"comparison-table__title\"\n                    title=\"Loan amount\">Loan amount<\/span><\/th>                                    <th>\n                                        <span data-sorting=\"affiliate\" class=\"comparison-table__title comparison-table__title--button\">\n                                                                                    <\/span>\n                                    <\/th>\n                                <\/tr>\n                            <\/thead>\n                            <tbody>\n                                <tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Wizzay.com\"\n                data-product-id=\"47914\">\n                \n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47914\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/wizzay-com\/redirect\/\">\n                    <img decoding=\"async\" title=\"Wizzay.com\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/screenshot-2023-10-30-at-124024-pm-ml-resize-x2.png\" alt=\"Wizzay.com\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.33333333\">\n            <a href=\"https:\/\/financer.com\/company\/wizzay-com\/#read-reviews\"><span class=\"simple-rating-value rating_light-green\" data-rating-value=\"4.3\">4.3<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\" - \"> &#8211; <\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\" - \"> &#8211; <\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/wizzay-com\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47914\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Low Credit Finance\"\n                data-product-id=\"47511\">\n                <span class=\"search-card__featured\">recommended<\/span>\n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47511\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\">\n                    <img decoding=\"async\" title=\"Low Credit Finance\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/low-credit-finance-logo.png\" alt=\"Low Credit Finance\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.98181818\">\n            <a href=\"https:\/\/financer.com\/company\/low-credit-finance\/#read-reviews\"><span class=\"simple-rating-value rating_green\" data-rating-value=\"5\">5.0<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\"5.99\">5.99% &#8211; 35.99%<\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\"100.00\">$100 &#8211; $50,000<\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47511\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"5KFunds\"\n                data-product-id=\"4647\">\n                <span class=\"search-card__featured\">recommended<\/span>\n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"4647\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\">\n                    <img decoding=\"async\" title=\"5KFunds\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2018\/08\/5kfunds-logo.png\" alt=\"5KFunds\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.21153846\">\n            <a href=\"https:\/\/financer.com\/company\/5kfunds\/#read-reviews\"><span class=\"simple-rating-value rating_light-green\" data-rating-value=\"4.2\">4.2<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\"5.99\">5.99% &#8211; 35.99%<\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\"500.00\">$500 &#8211; $35,000<\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"4647\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Credit Clock\"\n                data-product-id=\"47504\">\n                \n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47504\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/credit-clock\/redirect\/\">\n                    <img decoding=\"async\" title=\"Credit Clock\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/credit-clock-logo-resized.png\" alt=\"Credit Clock\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.97500000\">\n            <a href=\"https:\/\/financer.com\/company\/credit-clock\/#read-reviews\"><span class=\"simple-rating-value rating_green\" data-rating-value=\"5\">5.0<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\"5.99\">5.99% &#8211; 35.99%<\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\"100.00\">$100 &#8211; $5,000<\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/credit-clock\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47504\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr>                            <\/tbody>\n                        <\/table>\n                    <\/div>\n                                            <table class=\"comparison-table comparison-table--content-logo is-hidden-mobile\">\n                            <thead>\n                                <tr>\n                                    <th>\n                                        <span data-sorting=\"logo\"  data-sorting-type=\"asc\" class=\"comparison-table__title\">\n                                            Company                                        <\/span>\n                                    <\/th>\n                                <\/tr>\n                            <\/thead>\n                            <tbody>\n                                <tr class=\"comparison-table__row\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Wizzay.com\"\n                data-product-id=\"47914\">\n                \n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47914\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/wizzay-com\/redirect\/\">\n                    <img decoding=\"async\" title=\"Wizzay.com\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/screenshot-2023-10-30-at-124024-pm-ml-resize-x2.png\" alt=\"Wizzay.com\">\n                <\/a><\/td><\/tr><tr class=\"comparison-table__row\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Low Credit Finance\"\n                data-product-id=\"47511\">\n                <span class=\"search-card__featured\">recommended<\/span>\n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47511\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\">\n                    <img decoding=\"async\" title=\"Low Credit Finance\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/low-credit-finance-logo.png\" alt=\"Low Credit Finance\">\n                <\/a><\/td><\/tr><tr class=\"comparison-table__row\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"5KFunds\"\n                data-product-id=\"4647\">\n                <span class=\"search-card__featured\">recommended<\/span>\n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"4647\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\">\n                    <img decoding=\"async\" title=\"5KFunds\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2018\/08\/5kfunds-logo.png\" alt=\"5KFunds\">\n                <\/a><\/td><\/tr><tr class=\"comparison-table__row\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Credit Clock\"\n                data-product-id=\"47504\">\n                \n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47504\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/credit-clock\/redirect\/\">\n                    <img decoding=\"async\" title=\"Credit Clock\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/credit-clock-logo-resized.png\" alt=\"Credit Clock\">\n                <\/a><\/td><\/tr>                            <\/tbody>\n                        <\/table>\n                        <table class=\"comparison-table comparison-table--content-button is-hidden-mobile\">\n                            <thead>\n                                <tr>\n                                    <th>Get Started<\/th>\n                                <\/tr>\n                            <\/thead>\n                            <tbody>\n                                <tr class=\"comparison-table__row\"><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/wizzay-com\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47914\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47511\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"4647\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/credit-clock\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47504\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr>                            <\/tbody>\n                        <\/table>\n                                        <table class=\"comparison-table comparison-table--mobile is-content is-hidden-tablet\"\n                           js-data-comparison-table=\"\" js-data-affiliate-on-top=\"false\">\n                        <thead>\n                            <tr>\n                                <th style=\"width: 125px\">\n                                    <span data-sorting=\"logo\"  data-sorting-type=\"asc\" class=\"comparison-table__title\">\n                                        Company                                    <\/span>\n                                <\/th>\n                                <th>\n                                    <span data-sorting=\"rating\" data-sorting-type=\"asc\" class=\"comparison-table__title\">\n                                        Overall Rating                                    <\/span>\n                                <\/th>\n                                <th> <span data-sorting=\"interest-rate-range\" data-sorting-type=\"asc\" \n                    class=\"comparison-table__title\"\n                    title=\"Interest\">Interest<\/span><\/th><th> <span data-sorting=\"loan-amount-range\" data-sorting-type=\"asc\" \n                    class=\"comparison-table__title\"\n                    title=\"Loan amount\">Loan amount<\/span><\/th>                                <th>Get Started                                <\/th>\n                            <\/tr>\n                        <\/thead>\n                        <tbody>\n                            <tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Wizzay.com\"\n                data-product-id=\"47914\">\n                \n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47914\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/wizzay-com\/redirect\/\">\n                    <img decoding=\"async\" title=\"Wizzay.com\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/screenshot-2023-10-30-at-124024-pm-ml-resize-x2.png\" alt=\"Wizzay.com\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.33333333\">\n            <a href=\"https:\/\/financer.com\/company\/wizzay-com\/#read-reviews\"><span class=\"simple-rating-value rating_light-green\" data-rating-value=\"4.3\">4.3<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\" - \"> &#8211; <\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\" - \"> &#8211; <\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/wizzay-com\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47914\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Low Credit Finance\"\n                data-product-id=\"47511\">\n                <span class=\"search-card__featured\">recommended<\/span>\n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47511\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\">\n                    <img decoding=\"async\" title=\"Low Credit Finance\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/low-credit-finance-logo.png\" alt=\"Low Credit Finance\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.98181818\">\n            <a href=\"https:\/\/financer.com\/company\/low-credit-finance\/#read-reviews\"><span class=\"simple-rating-value rating_green\" data-rating-value=\"5\">5.0<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\"5.99\">5.99% &#8211; 35.99%<\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\"100.00\">$100 &#8211; $50,000<\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47511\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"5KFunds\"\n                data-product-id=\"4647\">\n                <span class=\"search-card__featured\">recommended<\/span>\n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"4647\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\">\n                    <img decoding=\"async\" title=\"5KFunds\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2018\/08\/5kfunds-logo.png\" alt=\"5KFunds\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.21153846\">\n            <a href=\"https:\/\/financer.com\/company\/5kfunds\/#read-reviews\"><span class=\"simple-rating-value rating_light-green\" data-rating-value=\"4.2\">4.2<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\"5.99\">5.99% &#8211; 35.99%<\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\"500.00\">$500 &#8211; $35,000<\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"4647\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr><tr class=\"comparison-table__row\"  data-columns=\"5\"><td class=\"comparison-table__logo\" data-sorting=\"logo\" data-sorting-value=\"Credit Clock\"\n                data-product-id=\"47504\">\n                \n                <a target=\"_blank\"  data-url_param_unq=\"\"  data-url_param_pid=\"47504\"  rel=\"sponsored nofollow\"  href=\"https:\/\/financer.com\/company\/credit-clock\/redirect\/\">\n                    <img decoding=\"async\" title=\"Credit Clock\" src=\"https:\/\/financer.global\/app\/uploads\/sites\/11\/2023\/10\/credit-clock-logo-resized.png\" alt=\"Credit Clock\">\n                <\/a><\/td><td data-sorting=\"rating\" data-sorting-value=\"4.97500000\">\n            <a href=\"https:\/\/financer.com\/company\/credit-clock\/#read-reviews\"><span class=\"simple-rating-value rating_green\" data-rating-value=\"5\">5.0<\/span><\/a><\/td><td data-sorting=\"interest-rate-range\" data-sorting-value=\"5.99\">5.99% &#8211; 35.99%<\/td><td data-sorting=\"loan-amount-range\" data-sorting-value=\"100.00\">$100 &#8211; $5,000<\/td><td data-sorting=\"affiliate\" data-sorting-value=\"1\"\n            js-data-comparison-table-button=\"\"><a target=\"_blank\"  rel=\"sponsored nofollow\" \n            href=\"https:\/\/financer.com\/company\/credit-clock\/redirect\/\" data-url_param_unq=\"\"  data-url_param_pid=\"47504\" \n            class=\"button is-rounded is-primary is-arrow comparison-table__button\" target=\"_blank\" >\n            See offer<\/a><\/td><\/tr>                        <\/tbody>\n                    <\/table>\n                <\/div>\n            <\/div>\n\n        <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Debts_Included_in_the_DTI_Calculation\">Debts Included in the DTI Calculation<\/h2>\n\n\n\n<p>When calculating your debt-to-income (DTI) ratio, lenders consider all of your recurring monthly debts. These include:<\/p>\n\n\n\n<ul>\n<li><strong><a href=\"https:\/\/financer.com\/credit-cards\/\" target=\"_blank\" rel=\"noreferrer noopener\">Credit Card<\/a> Minimum Payments<\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/financer.com\/loans\/car-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Auto Loans<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/financer.com\/loans\/personal-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Personal Loans<\/a><\/strong><\/li>\n\n\n\n<li><strong>Student Loan Payments<\/strong><\/li>\n\n\n\n<li><strong>Mortgage Payments<\/strong><\/li>\n\n\n\n<li><strong>Child Support<\/strong><\/li>\n\n\n\n<li><strong>Alimony<\/strong><\/li>\n\n\n\n<li><strong>Other Regular Monthly Debts<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/loans\/personal-loans\/\" class=\"button  is-rounded is-primary is-large\" target=\"_blank\"  >Best Personal Loans<\/a><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Monthly_Income_Included_in_DTI_Calculation\">Monthly Income Included in DTI Calculation<\/h2>\n\n\n\n<p>Lenders will consider various sources of your monthly income for calculating your debt-to-income ratio. This can include:<\/p>\n\n\n\n<ul>\n<li><strong>Pre-Tax Salary and Wages:<\/strong> Your primary income from employment before any taxes are taken out.<\/li>\n\n\n\n<li><strong>Bonuses and Overtime Pay:<\/strong> Regular or consistent bonuses and overtime payments you receive.<\/li>\n\n\n\n<li><strong>Part-Time Job Income:<\/strong> Earnings from any part-time work, if it&#8217;s a regular income source.<\/li>\n\n\n\n<li><strong>Self-Employment Income:<\/strong> Monthly income from any self-employed or freelance work.<\/li>\n\n\n\n<li><strong>Alimony or Child Support:<\/strong> Regular payments received for alimony or child support.<\/li>\n\n\n\n<li><strong>Investment Dividends:<\/strong> Regular income generated from investments such as stocks or mutual funds.<\/li>\n\n\n\n<li><strong>Rental Income:<\/strong> Monthly earnings from properties you rent out.<\/li>\n\n\n\n<li><strong>Social Security or Pension Payments:<\/strong> Regular payments received from social security, pensions, or other <a href=\"https:\/\/financer.com\/invest\/ira\/\" target=\"_blank\" rel=\"noreferrer noopener\">retirement plans.<\/a><\/li>\n\n\n\n<li><strong>Government Assistance Programs:<\/strong> Any consistent income from government assistance programs.<\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/results\/query\/1\/filter_non_affiliate\/1\/param_amount\/1000\/param_period\/365\/\" class=\"button  is-rounded is-primary is-large\" target=\"_blank\"  >Compare Loans<\/a><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Frequently_Asked_Questions\">Frequently Asked Questions<\/h2>\n\n\n<div class=\"fn_block block_fn_faq_list\"><h4>What debts do I include in my debt-to-income calculation?<\/h4><div class=\"faq_inner\"><p>Include all recurring monthly debt payments in your DTI calculation. This includes credit card payments, car loans, student loans, mortgages, and any other regular debt obligations. Do not include the total outstanding debt, just the monthly payments.<\/p><\/div><h4>Should I use gross or net income to calculate my debt-to-income ratio?<\/h4><div class=\"faq_inner\"><p>Use your gross income, which is your income before taxes and other deductions. Calculating your DTI ratio using net income (take-home pay) can lead to inaccuracies.<\/p><\/div><h4>How do I handle annual bonuses or irregular income in my DTI calculation?<\/h4><div class=\"faq_inner\"><p>If your income varies due to bonuses or irregular earnings, calculate an average monthly income based on the past year&#8217;s total income.<\/p><\/div><h4>Do I need to include debts I\u2019ve co-signed for in my debt-to-income ratio?<\/h4><div class=\"faq_inner\"><p>Yes, include any debt you&#8217;ve co-signed or guaranteed in your DTI calculation. These are considered potential financial obligations, even if you&#8217;re not the one making regular payments.<\/p><\/div><h4>Should rental income be included in my gross income for debt-to-income calculations?<\/h4><div class=\"faq_inner\"><p>Yes, include rental income in your gross income. However, only include the profit after deducting expenses related to the rental property.<\/p><\/div><h4>How often should I recalculate my debt-to-income ratio?<\/h4><div class=\"faq_inner\"><p>Recalculate your DTI ratio regularly, especially when your income or debt levels change. This is also important before applying for new credit or loans.<\/p><\/div><h4>Is it important to include small or irregular debts in my debt-to-income ratio?<\/h4><div class=\"faq_inner\"><p>Yes, include all debts, even small or irregular ones, in your DTI ratio. Overlooking these can impact the accuracy of your calculation.<\/p><\/div><\/div>","protected":false},"author":37432,"featured_media":48581,"comment_status":"open","ping_status":"closed","template":"","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false,"footnotes":""},"categories":[16],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki\/47995"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/wiki"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/37432"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=47995"}],"version-history":[{"count":46,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki\/47995\/revisions"}],"predecessor-version":[{"id":48630,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki\/47995\/revisions\/48630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/48581"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=47995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=47995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}