To calculate your DTI, you would typically add up all your monthly debt payments, including mortgage or rent, car loans, credit card payments, student loans, and other monthly debts. Then, divide that total by your gross monthly income (your income before taxes and other deductions) and multiply the result by 100 to get the percentage.

Lenders use DTI as a key factor in assessing a borrower's creditworthiness. A lower DTI ratio is generally considered favorable, indicating that a person has more income available to cover their debt obligations. Different lenders may have varying DTI ratio requirements, but a common guideline is that a DTI ratio of 43% or lower is often considered acceptable for most types of loans.

It's important to note that the acceptable DTI ratio can vary based on the type of loan and the lender's specific criteria. Different loans (such as mortgages, auto loans, or personal loans) may have different acceptable DTI thresholds. Additionally, individual financial situations and credit histories are considered when evaluating loan applications.