DSR Calculator Malaysia 2026
Work out your debt service ratio before you apply for a loan, and see how much room a new instalment leaves at the lines Malaysian banks commonly use.
Draft page. The rates here are still being verified against official sources and the page is not yet published.
Result
This is an estimate for planning. Confirm the final figure with the bank, JPJ or LHDN before you commit.
How it's calculated
The debt service ratio compares what you already pay on debts each month with what you take home. Bank Negara Malaysia defines it as total monthly bank and non-bank debt obligations divided by monthly income net of statutory deductions, and requires every lender to check it before approving a loan.
DSR = (existing commitments + new instalment) ÷ net monthly income
For each reference line the calculator also shows the largest new instalment that would still fit, and how much room is left after the loan you are considering:
largest new instalment = net income × limit − existing commitments
Worked example (the default inputs). Net income of RM 6,000.00 a month and existing commitments of RM 1,200.00 give a DSR today of 1,200 ÷ 6,000 = 20.0%. Adding the RM 2,148.37 instalment from the home loan calculator’s default loan raises the total to RM 3,348.37, a DSR of 55.8%.
At a 60% line the total allowed is RM 3,600.00, so the largest new instalment that fits is RM 2,400.00 and RM 251.63 of room remains. At 70% the total allowed is RM 4,200.00, the largest new instalment RM 3,000.00, and the room left RM 851.63.
The ratio is the bank’s first filter, not the whole decision. Your credit record in CCRIS and CTOS, the stability of your income and the property or car being financed all count as well.
Getting the income figure right
Start from your gross monthly salary and take away the employee EPF contribution, SOCSO, EIS and the monthly tax deduction shown on your payslip. Fixed allowances paid every month usually count. Overtime, commission and bonuses are usually counted only in part, based on several months of records, because they vary. Self-employed applicants are assessed on income shown in tax returns and bank statements, so declared income matters. If you are applying jointly, add both incomes and both sets of commitments.
Getting the commitments right
List every instalment you are paying today, including loans where you are a guarantor or joint borrower, and PTPTN even if you are behind. For credit cards, banks usually count a monthly amount based on the balance or the limit even when you pay in full each month, so a card you never use can still reduce your borrowing power. Cancelling unused cards before a big application is a simple way to improve the ratio.
FAQ
What DSR do Malaysian banks accept?
There is no single figure. Bank Negara Malaysia requires every lender to assess affordability with a prudent debt service ratio, but leaves the level to each bank. In practice many banks look for a DSR somewhere around 60% to 70% of net income, allow a higher ratio for higher earners, and are stricter for lower incomes. Ask the bank what limit it applies to your income band.
Is DSR based on gross or net income?
Net. BNM defines the debt service ratio against income net of statutory deductions, which means after EPF, SOCSO, EIS and income tax. A salary of RM 7,500 gross may be about RM 6,000 net, and the ratio is worked out on the RM 6,000. Variable income such as commission or overtime is usually counted only in part, based on several months of history.
Which commitments count in DSR?
All of them: housing loans, car hire purchase, personal loans, PTPTN, buy now pay later plans, and credit cards, for which banks usually count a monthly amount based on your balance or limit. Banks see most of these in CCRIS, the central credit reporting system run by Bank Negara Malaysia, and ask about the rest. Leaving a debt out of this calculator does not hide it from the bank.
How can I lower my DSR before applying?
Settle or reduce small loans and card balances, since a few hundred ringgit of monthly commitments can make the difference. Choose a longer tenure or a larger down payment to cut the new instalment. Add a co-borrower whose income counts, and make sure all of your income, including allowances and side income with tax records, is documented.
Does a high DSR mean I cannot afford the loan?
Not necessarily, but it is a warning. A DSR of 60% leaves 40% of your take-home pay for everything else: food, transport, utilities, insurance, savings and emergencies. Run your own budget alongside the bank’s ratio, and keep a buffer for an interest rate rise, which on a floating-rate home loan raises the instalment or the tenure.
Sources
- Bank Negara Malaysia, measures to promote responsible financing practices, 18 November 2011 (affordability on income after statutory deductions and all debt obligations)
- Bank Negara Malaysia, Financial Stability Review first half 2019, glossary: debt service ratio
- Bank Negara Malaysia, Policy Document on Personal Financing, 30 September 2025 (prudent DSR, reference to the Policy Document on Responsible Financing)