Debt-to-income ratio

Your debt-to-income ratio compares your total monthly debt payments with your gross monthly income, expressed as a percentage. Lenders often use it to judge whether you can take on more borrowing, and the level they accept varies by lender and country.

It matters because it shows how much of your income is already committed before you spend on anything else. Paying down debt or raising income both move the ratio, and checking it before applying for credit can spare you a rejected application.