Definition
Debt-to-income ratio is the personal finance ratio comparing monthly debt payments to monthly income. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Debt-to-income ratio is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Personal finance ratio comparing monthly debt payments to monthly income.
Common mistake
Using Debt-to-income ratio as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Debt
Money borrowed by a company or individual that must be repaid with interest.
Read definition →
Debt financing
Raising capital by borrowing money that must be repaid over time.
Read definition →
Debt service
Regular payments required to cover interest and principal on outstanding debt.
Read definition →
Debt-equity ratio
Financial ratio comparing a company's total debt to its shareholders' equity.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.