Once you've calculated what you spend each month on debt payments and what you receive each month in income, you have what you need to calculate your debt-to-income ratio. To calculate the ratio, divide your monthly debt payments by your monthly income. Then, multiply the result by 100 to come up with a percent.
Example
In our example, Sam's monthly debt payments total $1,540 and his monthly income total $4,000. So, let's divide $1,540 by $4,000 and then multiply by 100.
$1540 / $4000 = .385 X 100 = 38.5%Sam's debt to income ratio is 38.5%.
