To calculate your debt-to-income (DTI) ratio, divide your total monthly debt payments by your gross monthly income, then multiply by 100 to get a percentage.
For example, if your monthly debts (mortgage/rent, car payments, credit cards, student loans, etc.) total $2,000 and your gross monthly income is $6,000:
DTI = ($2,000 ÷ $6,000) × 100 = 33.3%
Lenders typically prefer a DTI of 36% or lower, though some loan programs accept up to 43% or even 50% for qualified borrowers.