How to Calculate DSR: Formula, Examples, and What Counts as a Commitment
To calculate DSR, sum every monthly commitment, divide by monthly income, and multiply by 100. Use conservative numbers so your result lands closer to how a banker would read it.
Try it with your numbersPunch in your monthly income and commitments — the DSR result updates as you type, and nothing leaves your browser.
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Step 1: List your monthly income
Start with verifiable income from payslips, bank statements, tax filings, or business records. If your income is variable, use a conservative average rather than the best month.
For a first-pass check on hutang.me, gross income is fine. When a bank assesses a real application, the policy may use net income after statutory deductions, with extra rules for commission, overtime, or rental income.
Step 2: Add every monthly commitment
Include debts that recur every month, not ordinary spending like food or fuel.
- Housing loan or property hire-purchase instalments.
- Car or motorcycle instalments.
- Personal loans.
- PTPTN or other education financing.
- Credit cards, usually based on minimum payment or the bank-internal floor.
- Buy-now-pay-later instalments if they appear on your credit report or statements.
Worked example
If your monthly income is RM6,000, car instalment RM800, PTPTN RM150, credit cards RM250, and a new housing loan estimated at RM1,900, the total commitment is RM3,100.
DSR = RM3,100 / RM6,000 × 100 = 51.7%. That already sits in the high zone for many applications, so you may need to lower commitments, increase the deposit, or shorten the new loan amount.
If the same commitments are measured against RM5,100 net income, DSR becomes 60.8%. That enters the upper 60% to 70% market-practice zone, even though BNM does not set one universal DSR cap for every borrower.
Step 3: Add the loan you are applying for
DSR for an application is always forward-looking. The bank evaluates your position as if the new loan already exists, so add its estimated instalment before judging your number.
Once you have an estimated instalment, put it into the hutang.me DSR calculator alongside your existing commitments. If the result approaches 60% to 70%, treat it as a strict-review zone, not automatic approval or an official BNM limit.
Gross versus net: the same borrower, two answers
Take RM6,000 gross income with RM3,100 in total commitments. On gross income, DSR is 51.7%. After EPF, SOCSO, EIS, and monthly tax deductions, take-home pay might be around RM5,100 — and the same commitments now read as 60.8%.
Many banks assess on net income, which is why an online result that looks safe on gross can still come back declined. If your net-income DSR sits in the comfortable zone, you have real headroom.
Common mistakes that skew the result
Most DIY calculations go wrong in the same few places.
- Using your best month instead of a conservative average for commission or overtime income.
- Forgetting BNPL instalments, zero-interest plans, and standing instructions that appear on statements.
- Leaving out the new loan instalment — the single most common error.
- Counting only the minimum credit card payment while actually carrying a large revolving balance month to month.
- Ignoring instalments that step up later, such as post-construction housing instalments on properties bought off-plan.
Common questions
Do I include the new loan instalment?+
Yes. To assess affordability for a new loan, run DSR with the new instalment included alongside your existing commitments. The short formula is DSR = total monthly commitments ÷ gross monthly income × 100.
Should I use gross or net income?+
For a first-pass check, gross income is fine. For a more conservative estimate, run net income or compare both — many banks use net income internally.
How do I average variable income like commission?+
Common practice is to average six to twelve months of records, and banks often count only a portion of commission or overtime. For your own check, average the last six months and then discount it slightly.
Does a joint application change the calculation?+
Yes. Banks combine both applicants' acceptable income and both sets of commitments. A partner with stable income and low debt usually improves the ratio; one with heavy commitments can pull it down.