Debt-to-income ratio
Understand why dTI is a capacity indicator.
In this lesson
Debt-to-income ratio is part of Loan Cost Lab. This preview shows how credit-debt connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
Imagine this situation: Monthly income: 180000 in local currency. Monthly debt payments: 54000 in local currency.
What you need to know
DTI is a capacity indicator. A 60% DTI means 60% of income is already committed — only 40% remains. A new loan payment reduces this further. Lenders see high DTI as low margin of error — any income disruption triggers cascading default.
Real-life example
Real-life money moment: Monthly income: 180000 in local currency. Monthly debt payments: 54000 in local currency. What is your DTI ratio and how do lenders interpret it? The key lesson is: DTI: 54,000/180,000=30%.
Progress Penguin connection
Open the linked simulator and test one scenario for “Debt-to-income ratio.” Use this objective: Understand why dTI is a capacity indicator. Save the result and explain which input changed the outcome most.
Activity preview
Choose the best money move
Use what you just learned. Choose the option you can explain.
Try one real money action
Open Tasks and submit proof for one task, or open Requests and make a deposit request. Parent approval can happen later.
Quiz preview
DTI stands for:
Monthly income: 180000 in local currency. Monthly debt payments: 54000 in local currency. What is your DTI ratio and how do lenders interpret it?