What is a good debt-to-income ratio to maintain?

A good debt-to-income (DTI) ratio is generally 36% or below, meaning your total monthly debt payments should not exceed 36% of your gross monthly income. Most financial experts consider anything under 36% healthy, with the ideal being closer to 20% or less if possible. Lenders typically use 43% as the maximum threshold for mortgage approval, though some prefer 36%. If your DTI exceeds 50%, it signals financial stress and limited ability to handle unexpected expenses. To improve your ratio, focus on paying down existing debt, avoiding new debt, or increasing your income. Keeping DTI low gives you more financial flexibility and makes you a stronger candidate for loans at favorable interest rates.