This mysterious and often confusing formula of time-dliation can interpreted geometrically.
As Dodo says, "Hint: your T and t-zero are not points in time, but time intervals."
Let's introduce events:
the common meeting event O,
the distant event t0 on the moving clock [when the moving clock reads t0],
the local event T [when the stationary clock reads T], which our stationary observer says is simultaneous with the distant event t0. (Note that the moving observer does not regard these two events as simultaneous!)
OT and Ot0 are [timelike] legs of a [Minkowski]-right triangle on a spacetime diagram (as drawn below... time runs upwards by convention).
The legs of the triangle are OT, Ot0 and Tt0.
Ot0 is the "hypotenuse" of this [Minkowski]-right triangle.
OT is the "adjacent side" and Tt0 is the "opposite side"... these legs are [Minkowski]-perpendicular.
Another way to describe this is that the vector Ot0 is being resolved into temporal and spatial components by our stationary observer.
[By the way, the "angle" \theta is called the rapidity... and it is related to the relative velocity by v=c\tanh\theta. ]
So, think this way:
(adjacent side OT) = "COSINE(ANGLE)" (hypotenuse Ot0),
where "COSINE(ANGLE)" in the Minkowski geometry is \cosh\theta=\frac{1}{\sqrt{1-\tanh^2\theta}}=\frac{1}{\sqrt{1-(v/c)^2}}=\gamma
\begin{picture}(200,200)(0,0)<br />
\put(50,30){O}<br />
\put(50,50){\textcolor{red}{\line(3,4){52}}}<br />
\put(50,50){\textcolor{green}{\line(0,1){70}}}<br />
\put(50,120){\textcolor{green}{\line(1,0){50}}}<br />
\put(50,125){T}<br />
\put(100,125){\[t_0\]}<br />
\put(48,65){\[\theta\]}<br />
\end{picture}<br />
A spacetime diagram is worth a thousand words.