Back End Ratio

Business, Legal & Accounting Glossary

Definition: Back End Ratio


Back End Ratio


Full Definition of Back End Ratio


The calculation lenders use to compare a borrower’s gross monthly income to their total debt when determining loan approval. Takes into account existing long-term debt.


Cite Term


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Page URL
https://payrollheaven.com/define/back-end-ratio/
Modern Language Association (MLA):
Back End Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 29, 2021 https://payrollheaven.com/define/back-end-ratio/.
Chicago Manual of Style (CMS):
Back End Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/back-end-ratio/ (accessed: November 29, 2021).
American Psychological Association (APA):
Back End Ratio. PayrollHeaven.com. Retrieved November 29, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/back-end-ratio/

Definition Sources


Definitions for Back End Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.