Free DSR calculator
Calculate your estimated DSR
Use the monthly income that a lender is likely to recognise, then include all existing debt commitments and the estimated instalment for the new financing.
Estimated DSR
—
This is an estimate, not an approval result. Each lender may recognise income and commitments differently and may apply different criteria according to the applicant’s profile and financing product.
What is DSR?
DSR stands for Debt Service Ratio. It compares the monthly debt payments counted by a lender with the monthly income that lender recognises. The result helps indicate how much of your income is already committed before a new home loan, refinancing facility or personal loan is approved.
Worked DSR example
Suppose a lender recognises RM5,000 of monthly income. Existing commitments total RM1,200 and the proposed financing instalment is RM1,500. Total commitments are RM2,700.
RM2,700 ÷ RM5,000 × 100 = 54% estimated DSR
This percentage is only an estimate. Different lenders may count income, credit-card commitments and other obligations differently.
Commitments commonly included
- Home-loan and property-financing instalments
- Car and hire-purchase instalments
- Personal-loan instalments
- Credit-card commitments
- Education or other reported financing
- The estimated instalment for the new application
Use your CCRIS report and current statements when listing commitments. The treatment of individual facilities remains subject to each lender’s assessment.
Why your bank-calculated DSR may differ
A calculator uses the figures you enter. A lender may use a different recognised-income amount after reviewing salary components, variable income, rental income, business income or supporting documents. It may also calculate certain commitments using its own method. This is why the same applicant can receive different eligibility outcomes from different lenders.
Three practical ways to improve DSR
- 1. Reduce monthly commitments. Settle or restructure eligible debts only after considering costs and your wider financial position.
- 2. Avoid unnecessary new credit. Additional facilities can increase commitments before a financing application.
- 3. Prepare complete income evidence. Accurate documents help a lender assess the income it can recognise.
Go beyond the DSR estimate
A DSR result does not show the full application picture. Use the relevant screener for a broader preliminary eligibility assessment based on the product you need.
Frequently asked questions
What is DSR in Malaysia?
Debt Service Ratio, or DSR, is the percentage of recognised monthly income used to pay monthly debt commitments. Lenders use it as one part of their affordability and credit assessment.
How do I calculate my DSR?
Divide total monthly debt commitments, including the estimated new financing instalment, by recognised monthly income and multiply the result by 100.
What is a good DSR for a home loan?
There is no single DSR threshold used by every lender. The acceptable level can vary by income, applicant profile, financing product and each lender’s current criteria.
Does a low DSR guarantee loan approval?
No. DSR is only one factor. Lenders may also assess credit history, employment or business income, documents, property details and other underwriting requirements.