Debt to Income ratio refers to the percentage of a consumer's monthly gross income that goes toward paying debts. Speaking precisely, DTIs often cover more than just debts; they can include certain taxes, fees, and insurance premiums as well.

There are two main kinds of DTI front-end and back-end.

The front-end ratio indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (PITI includes mortgage principal and interest, mortgage insurance premium, hazard insurance premium, flood insurance premium, property taxes, and homeowners association dues).

The back-end ratio indicates the percentage of income that goes toward paying all recurring debt payments, including those covered by the first DTI, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments such as tax liens.

Here is a simple Debt-to-Income ratio calculator you can use to estimate your DTI

About your debt-to-income ratio

36% or less: This is a healthy debt load to carry for most people.
37%-42%: Not bad, but start paring debt now before you get in real trouble.

43%-49%: Financial difficulties are probably imminent unless you take immediate action.

50% or more: Get professional help to aggressively reduce debt-to-income ratio and total debts.