Personal Finance
Debt-to-Income Ratio
Definition
What is Debt-to-Income Ratio?
Total periodic debt payments divided by gross or net incomeProfit remaining after operating costs, financing costs, taxes, and other recognised items., depending on the stated method.
Example in practice
How This Looks in Practice
₦200,000 monthly debt payments on ₦800,000 income produce a 25% ratio.
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