hutang.me — Free DSR (Debt Service Ratio) Calculator for Malaysian Borrowers

Quick answer: the DSR formula banks start with

The core DSR formula is: total monthly debt commitments ÷ monthly income × 100. For a first public estimate, use gross monthly income; for a more conservative bank-style estimate, also run the same formula on net or recognised income.

The formula is easy to quote, but bank policy changes the inputs. A bank may recognise only part of commission income, apply its own credit-card commitment floor, or test the file more strictly for a particular product.

Example: how DSR differs between banks

A borrower earns RM5,000 basic plus RM1,000 average commission, carries a RM700 car instalment, RM250 PTPTN, and a RM4,000 credit card balance, and wants a home loan with a RM1,600 instalment.

Bank A counts commission at 80% and the card at minimum payment: recognised income RM5,800, commitments about RM2,750, DSR near 47% — comfortable. Bank B counts commission at 50% and 5% of the card balance: recognised income RM5,500, commitments RM2,950, DSR past 53% — same person, tighter file. Layer net-income policies on top and the spread between banks widens further.

Where bank calculations can differ

Two borrowers with the same salary and instalments can receive different outcomes because banks apply internal rules. Common differences include:

• Gross income versus net income after EPF, SOCSO, tax, and recurring deductions.
• How commission, overtime, allowance, rental income, and business income are averaged.
• Whether credit card commitment is based on the minimum payment, outstanding balance percentage, or internal floor.
• How joint borrowers, guarantors, and existing property loans are treated.
• Different comfort levels for housing loan, hire purchase, and personal financing.

How banks typically treat each income type

Income recognition is where most surprises come from. Common market practice, which individual banks adjust:

• Basic salary: usually recognised in full, assessed net of statutory deductions.
• Fixed allowances: often counted fully if they appear consistently on payslips.
• Commission, overtime, and bonuses: typically averaged over six to twelve months, then only partially counted — discounts of 20% to 50% are common.
• Rental income: usually needs a tenancy agreement plus bank-statement proof, and is often counted at around 70% to 80%.
• Business income: assessed from tax filings and bank statements, with more conservative treatment for young businesses.

How to prepare before applying

Run your own DSR using both gross and net income. Then prepare the documents that prove stable income and clean repayment behavior: payslips, EPF statement, bank statements, tax documents, CCRIS report, and existing loan statements.

If the number is tight, ask the bank how it will treat credit cards, PTPTN, variable income, and the proposed new instalment before submitting multiple applications.

Your document checklist

Have these ready before any application — they decide how much of your income the bank can recognise.

• Latest three to six months of payslips and bank statements showing salary credits.
• EPF statement and latest tax filing or e-Filing acknowledgment.
• Your CCRIS report (free via eCCRIS) — review it yourself before the bank does.
• Statements for every existing loan and card, plus settlement proof for anything recently cleared.
• For the self-employed: SSM registration, around two years of accounts or tax filings, and company bank statements.