Your Debt Service Ratio against typical bank ceilings.
Debt Service Ratio
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Net income
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Headroom to 70%
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Your breakdown
Updates live as you type| Item | Amount |
|---|
Worked example
Take a gross salary of RM6,000 a month with RM2,200 of existing debt repayments. Banks work from net income, so the tool first strips out the employee statutory deductions: 11 percent EPF is RM660, SOCSO at 0.5 percent is RM30, and EIS at 0.2 percent is RM12, leaving a net income of RM5,298. The debt service ratio is then RM2,200 divided by RM5,298, which is about 41.5 percent. Most banks cap lending around 60 to 70 percent of net income, so at 41.5 percent you sit comfortably inside the ceiling. Up to the 70 percent line you could carry RM3,709 of debt in total, so there is roughly RM1,509 a month of headroom for a new mortgage or car loan before banks would start to push back.
| Item | Amount (RM) |
|---|---|
| Gross income | 6,000 |
| Less EPF, SOCSO, EIS | 702 |
| Net income | 5,298 |
| Monthly debt repayments | 2,200 |
| Debt service ratio | 41.5% |
How it is calculated
The debt service ratio is your total monthly debt repayments divided by your net income, expressed as a percentage. Net income here is gross pay less the employee-side statutory deductions, namely 11 percent EPF, 0.5 percent SOCSO, and 0.2 percent EIS, with SOCSO and EIS capped at the RM6,000 monthly wage ceiling. Income tax is not deducted, because the common bank DSR convention works from pay after statutory contributions but before tax. The headroom figure shows how much more debt you could service before reaching a 70 percent ceiling, a typical upper limit, though banks set their own caps by income band and policy. A lower ratio signals more borrowing capacity, so clearing existing debt or raising income improves your standing.