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How to Calculate Income to Debt Ratio: A Clear Guide Calculating your income to debt ratio is a crucial step in assessing your financial health. This ratio is used by lenders to determine if you are a good candidate for a loan or credit card. It is also a metric that you can use to evaluate your own financial situation and make informed decisions about your spending and borrowing habits. To calculate your income to debt ratio, you need to determine your total monthly income and your total monthly d