Okuzeka
Finance & Banking vocabulary · Loans & Credit

Debt-to-income ratio

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, debt-to-income ratio means: A measure comparing a person's recurring debt payments with income over the same period.

In Turkish: borç ödemelerinin gelire oranı

How it is used

Often abbreviated DTI; specify whether income is gross or net and which debts are included.

Example sentences

  1. The new car payment increased the applicant's debt-to-income ratio.

    An additional debt payment increases the numerator.

  2. The analyst corrected the debt-to-income ratio after verifying monthly earnings.

    Income verification changes the denominator used in the calculation.

Common collocations

  • calculate the debt-to-income ratio
  • DTI assessment
  • creditworthinessHow likely a person or company is to repay borrowed money on time, judged from income, existing debt, payment history and financial strength.
  • personal loanA loan given to an individual for personal needs such as a car repair, a wedding or education, and repaid in fixed instalments over a set period.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.