What is Debt-to-Income (DTI) Ratio?
The debt-to-income (DTI) ratio represents the portion of your gross monthly income allocated to cover your monthly debt obligations. Lenders use this ratio to assess your borrowing risk. You can calculate the debt-to-income ratio using the following formula: Total Monthly Expenses ÷ Total Monthly Income = Debt-to-Income Ratio.
OTHER TERMS BEGINNING WITH "D"
- Days Sales Outstanding (DSO)
- Debt Advisor (U.S)
- Debt Consolidation
- Debt Covenant
- Debt Equity Ratio (D/E ratio)
- Debt Financing
- Debt Service Coverage Ratio (DSCR)
- Debt to Assets Ratio
- Debt to Income Ratio (DTI)
- Debt Yield
- Debtor
- Debtor Finance
- Debtor Report
- Debtor-in-Possession (DIP)
- Debtor-in-Possession Financing
- Deductions
- Deed of Company Arrangement (DOCA)
- Demand Line of Credit
- Deposit Account Control Agreement (DACA)
- Depreciation
- Depreciation & Amortization
- Dilution
- Dilution of Receivables
- Dilutive Financing
- Directional Boring Financing
- Discount
- Distress Cost
- Divestment
- Documentation Fee
- Double Brokering
- Dry Van
- Due Diligence
- Dynamic Discounting