Terms Beginning With 'b'

Back-end Ratio

  • January 03, 2020
  • Team Kalkine

The back-end ratio is also termed as debt-to-income ratio, indicating part of monthly income of an individual that is used for debt payment. The ratio is calculated as (total monthly debt expense / gross monthly income) X 100. This ratio is also used to evaluate the risk level associated with money lent to a prospective borrower.

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