Debt to Income Ratio

From Open Risk Manual


Debt to Income Ratio (DTI) is a financial indicator (ratio) of the ability of borrower to service their debts. It is typically used for individual (retail) borrowers.

The DTI is defined as the ratio of total debt payments (e.g., per month) to the gross income over the same period. For corporate borrowers the corresponding metric is usually denoted Debt Service Coverage Ratio