Your first step: Build the free DueSmart Credit Health Passport. If your reports contain a genuine, supportable error, follow the Repair path. If the reports are accurate and you are preparing for a future opportunity, follow Growth.

Use the basic formula

Add the monthly debt payments included for the relevant application, then divide by gross monthly income. Multiply by 100 to express the result as a percentage.

For example, $1,500 in monthly debt payments divided by $5,000 in gross monthly income equals 30 percent.

Confirm what belongs in the calculation

Housing, auto, student, installment, revolving minimums, co-signed obligations, and other debts may be treated differently by product or lender. Ask how variable income and proposed housing costs are handled.

Do not omit an obligation because it feels temporary.

Avoid universal thresholds

The CFPB notes that different loan products and lenders use different DTI limits. A single percentage from social media cannot predict a decision.

Use DTI to test affordability and questions, then confirm criteria with the provider.

Improve the plan, not only the ratio

A lower monthly obligation or higher documented income may change the math, but closing an account, taking a new loan, or shifting debt can have other consequences. Evaluate total cost, cash reserves, and stability together.

Your action checklist

  1. List monthly debt payments
  2. Verify gross monthly income
  3. Calculate the ratio
  4. Include co-signed obligations
  5. Ask lender-specific rules
  6. Test the proposed new payment
Keep the promise honest: DueSmart helps you understand, organize, document, and prepare. It does not guarantee a score increase, deletion, apartment, vehicle, home, rate, or funding approval.

Authoritative sources

DueSmart provides general consumer education and organization tools—not legal, tax, financial, credit-repair, real-estate, or investment advice. Laws, provider criteria, bureau data, and scoring models can change. Confirm current requirements with the relevant provider and qualified professionals.