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 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. Here are the main ones:
| 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
Calculate Your Actual DSR Now
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