Calculate Debt Service Ratio
Enter monthly income, existing commitments and new loan installment.
This DSR calculator gives a simple affordability estimate. Banks may use different income recognition, commitment treatment, credit score, CCRIS/CTOS and internal approval rules.
Your DSR result
Estimated debt service ratio
Based on total monthly debt divided by monthly income.
How Debt Service Ratio Is Calculated
Debt Service Ratio, or DSR, compares your total monthly debt commitments with your monthly income. It is commonly used as a simple loan affordability indicator before applying for housing loans, car loans or personal loans.
Lower DSR
Usually easier to manage, subject to bank assessment.
Moderate DSR
May still be acceptable depending on income and bank policy.
Higher DSR
May be harder to approve unless income profile is strong.
Final Approval
Actual approval depends on more than DSR alone.
Debt Service Ratio Example
If your monthly income is RM5,000, existing commitments are RM800 and new loan installment is RM1,200, your total monthly debt is RM2,000. Your estimated DSR is 40%.
| Monthly Income | Total Debt | Estimated DSR | Simple Reading |
|---|---|---|---|
| RM5,000 | RM1,500 | 30% | Lower commitment level |
| RM5,000 | RM2,500 | 50% | Moderate commitment level |
| RM5,000 | RM3,500 | 70% | High commitment level |
Note: Different banks may use different DSR limits. Some banks may accept higher DSR for higher income applicants, while others may be stricter.
What This DSR Calculator Shows
This calculator helps estimate total monthly debt, DSR percentage, remaining monthly income after debt and simple affordability reading. It is useful before applying for personal loan, home loan or car loan.
Who Should Use This DSR Calculator?
- Borrowers checking loan affordability before applying
- Home buyers estimating mortgage affordability
- Employees comparing monthly commitments against income
- Personal loan applicants checking repayment pressure
- Anyone planning cash flow before taking new debt
Frequently Asked Questions
What is Debt Service Ratio?
Debt Service Ratio compares your monthly debt commitments with monthly income. It helps estimate how much of your income is used to repay loans.
What is a good DSR in Malaysia?
A lower DSR is generally safer. Many people use below 40% as a comfortable level, but actual bank approval depends on lender policy and applicant profile.
Does high DSR mean my loan will be rejected?
Not always. Banks may also consider income level, credit record, job stability, collateral, loan type and internal scoring.
Should I use gross income or net income?
This calculator uses gross monthly income by default. Some banks may use gross income, net income or adjusted income depending on their policy.
Can I reduce my DSR?
Yes. You can reduce DSR by lowering existing commitments, reducing new loan amount, extending tenure, increasing income or paying down debt.
Malaysia Financial Planning Guides
Learn more about debt service ratio, loans and home financing in Malaysia.
Related Calculators
Explore more free Malaysia loan and salary calculators.