A good debt-to-income ratio is a measure of how much of your monthly income is spent on debt payments. It is calculated by dividing your total monthly debt payments by your gross monthly income. A good debt-to-income ratio is generally considered to be 36% or less. This means that no more than 36% of your monthly income should be spent on debt payments.
Having a good debt-to-income ratio is important because it can help you qualify for loans and other forms of credit. It can also help you save money on interest payments. Additionally, a good debt-to-income ratio can be a sign of financial responsibility.