DSR Calculator Malaysia 2026: What It Is and How to Calculate Yours
By Threenity Capital · 1 April 2026 · 5 min read
Key Takeaway: Your DSR determines whether a bank will approve your home loan. Most Malaysian banks require DSR below 70–80%. Calculate yours before applying.
What is DSR (Debt Service Ratio)?
DSR stands for Debt Service Ratio. It measures the percentage of your net monthly income that goes towards debt repayments — including your existing loans and the new home loan you're applying for. Banks evaluate your DSR alongside your rekod CCRIS anda when assessing a home loan application.
Banks in Malaysia use DSR as the primary criterion to decide whether to approve or reject your home loan application.
DSR Formula
DSR = (Total Monthly Debt Repayments ÷ Net Monthly Income) × 100%
Where:
Total Debt = Existing commitments + New home loan instalment
Net Income = Gross income − EPF (11%) − PCB (income tax)
DSR Example Calculation
| Gross Monthly Income | RM 8,000 |
| Net Income (after EPF & tax, ~89%) | RM 7,120 |
| Car Loan | RM 700 |
| Personal Loan | RM 300 |
| New Home Loan Instalment (est.) | RM 1,800 |
| Total Monthly Debt | RM 2,800 |
| DSR | 2,800 ÷ 7,120 = 39.3% ✅ |
Malaysian Bank DSR Limits
Different banks have different DSR limits — and the kadar faedah semasa directly affects your estimated monthly instalment and therefore your DSR. Here are the main DSR limits:
| Bank | Max DSR | Notes |
|---|---|---|
| Standard Chartered | 90% | Highest in Malaysia |
| Hong Leong Bank | 85% | Flexible income types |
| Maybank / CIMB / Affin | 80% | Major banks |
| Public Bank / RHB / AmBank | 75% | Mainstream options |
| HSBC / UOB / Alliance | 70% | Stricter income floor |
3 Ways to Improve Your DSR
- 1Pay off or reduce existing commitments before applying — even clearing one personal loan can drop DSR by 5–10%
- 2Add a joint applicant (spouse or family member) to increase total net income
- 3Choose a longer tenure (up to 35 years) to reduce the monthly instalment amount
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