Debt to Income Ratio: Difference between revisions
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Latest revision as of 15:24, 8 August 2019
Definition
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