Debt-to-income ratio
The share of income used to repay debt under a specified calculation method.
Definition
The share of income used to repay debt under a specified calculation method.
Why this concept matters
It helps assess how heavily repayments weigh on a budget.
How it works
Repayments included under the chosen method are divided by monthly income included under that same method.
Calculation guide : Simple debt-to-income ratio = debt repayments ÷ income × 100
What to watch
Providers and countries may use different definitions and thresholds.
Simple example
€700 of monthly repayments on €2,800 income equals 25% under a simple calculation.
Example currency : France (EUR). The reference country controls the example currency.
Try the mechanism
Educational estimate only, with no personalised advice or guarantee.Related concepts
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