DTI, or debt-to-income ratio, is the percentage of income you spend on your debts and housing each month. DTI doesn’t consider the total amount of debt you have.

For example, the debt-to-equity ratio and interest coverage ratios are supplemental ways to see how leveraged a company is. Remember that a high debt-to-assets ratio isn’t necessarily a bad thing.

Here’s an example: Say you bring in $6,000 a month, and your monthly debt payments total $1,500. You’d divide 1,500 by 6,000 to get 0.25 — a 25% debt-to-income ratio.

A debt-to-income ratio measures the percentage of a person’s monthly income that goes to debt payments. Where your credit score tells lenders how you've managed loan payments in the past, your ...

Find out how affordable your home equity borrowing options could be today.

Home equity is the difference between your house's current market value and the balance on your mortgage. It's often represented as a percentage: If your home is worth $200,000 and your mortgage is ...

Your debt-to-income ratio is an important measurement that lenders use to judge your creditworthiness. It looks at your monthly debt obligations in relation to how much you earn. Learn about where ...

The most debt-laden companies, at the bottom, have a median ratio of just over 50%. At the 50% level, a company’s net long-term debt is as great as the market value of its common shares.

A credit score of 720 or higher A debt-to-income ratio of under 40% Borrowing no more than 80% of your home's value However, as we’ve flagged, automated models can sometimes undervalue properties.

If your monthly house payment would equal $3,750 and you pay $500 per month on a car loan but have no other debt, your total debt would be $4,250. Here’s what that calculation looks like: ...