Overview

The DSR (Debt Service Ratio) Calculator computes the ratio of total annual loan repayments to annual income, determining your maximum borrowing capacity. Korea enforces a 40% DSR cap on mortgages, and the Stress DSR system factors in potential rate increases. Use this calculator to accurately assess your loan limits and repayment capacity.

Formula

DSR (%) = (Annual total loan repayments ÷ Annual income) × 100

Annual repayments = Mortgage repayment + Personal loan repayment + Other loan repayments

Stress DSR = Current DSR + (Loan balance × Stress rate premium ÷ Annual income)

DSR Regulations:
- Banks: 40% or below
- Non-banks (insurance, savings banks): 50% or below

How to Use

1. 1Enter your annual income (pre-tax).
2. 2Enter existing loan details: type, balance, rate, and repayment method.
3. 3Enter desired new loan amount, rate, and term.
4. 4Select whether to apply stress rate testing.
5. 5Click calculate to see current DSR, post-loan DSR, and maximum borrowing capacity.

Tips

• ✔DSR includes all loans (mortgage, personal, student, auto). Reducing existing debt increases your mortgage capacity.
• ✔Extending the loan term reduces annual repayments and DSR, but increases total interest.
• ✔Stress DSR adds 0.25-1.5%p to the rate scenario, which may reduce your actual limit.
• ✔Personal loans are calculated as 5-7 year amortization regardless of actual maturity for DSR purposes.
• ✔Joint-name borrowing allows income combining, potentially increasing the loan limit.

FAQ