What is DTI?

DTI stands for Debt to Income Ratio. It is the percentage of your gross monthly income that is designated towards paying debts. DTI is determined by dividing your gross monthly income by the total of the minimum payments from your debts (car loans, mortgage, credit cards, etc). It is generally used to give you an idea of how "healthy" your finances are.

How do I improve my DTI?

• Generate more income monthly
• Pay off debts so monthly obligations are lower

Suggested DTI

Experts recommend keeping your total DTI below 36% as that is generally the cap for what lenders are comfortable with loaning money.

Further reading can be done here.

How we calculate your DTI

DTI is based off of your Gross income and the minimum payments of all of your debts. Divvy will grab all the Recurring Incomes from the Income page for the current month. Please keep a few things in mind about the number you see here:

• If you are entering your Net income (post tax), your DTI ratio won't be accurate as DTI is based off of Gross income
• If you don't provide a Minimum Payment when logging your debts on the Debt page, your DTI ratio won't be as accurate
• If the number of pay periods fluctuate for you from month to month (most do), your Income used in the calculations will be different as well (IE: Months with 5 weeks typically will calculate lower DTI because your Income is greater during those months)
• This is a rough number! Our system can't accurately calculate your actual DTI unless all the necessary information is entered. Most people set their budgets based off their Net income, therefore your DTI will always be a little off from your actual DTI ratio.

Incomes that you enter in the Individual income section are not considered a part of your stable income, so those values are not used in calculating your DTI.