How do I calculate my debt-to-income ratio for a personal loan?

What counts in the numerator (monthly debt payments): Mortgage or rent payment (if rental, some lenders include it, others do not - it varies). Car loan minimum monthly payment. Student loan minimum monthly payment. Minimum credit card payments (not current balances - just the required minimum). Any other installment loan payments. Child support or alimony payments (if you pay them). The new personal loan payment you are applying for.

What does NOT count: Utilities (electricity, gas, internet, phone). Groceries. Insurance premiums (health, auto, life). Gym memberships and subscriptions.

The denominator (gross monthly income): This is your income BEFORE taxes and deductions. If you earn $60,000/year, your gross monthly income is $5,000. Include: W-2 wages, self-employment income (net of business expenses from Schedule C), Social Security or disability income, rental income (typically 75% of gross rent for conservatism), investment income (dividends, interest), alimony received (if documented and expected to continue).

DTI thresholds: Under 36%: excellent. Most prime lenders approve here. 36%-43%: acceptable. Many lenders accept up to 43%. 43%-50%: difficult. Most traditional lenders decline above 43%. Over 50%: challenging for personal loans. Some subprime lenders accept higher DTI but at elevated rates.

Practical example: Gross income: $5,000/month. Existing debt payments: Car loan $350, student loan $200, credit card minimums $150 = $700 total. Desired new personal loan payment: $400/month. DTI with new loan: ($700 + $400) / $5,000 = 22%. This is excellent - most lenders would approve.