DSR Calculator

Estimate debt-service-to-income after current debts and a new loan payment.

DSR inputs

Estimate debt-service-to-income after adding a new loan.

Estimated DSR

31.7%

New monthly payment

$1,342

Annual debt service

$26,904

Estimated max new loan

$259,308

The headroom estimate assumes fully amortizing payments and uses the same rate and term entered for the new loan.

What is the DSR calculator?

DSR, or debt service ratio, measures how much of annual income is consumed by all loan principal and interest payments. The calculator estimates the next 12 months of repayment for each loan and compares the result with Korean DSR management bands.

Formula

DSR (%) = annual principal and interest / annual income x 100. After the 2024 rule revision, new first-tier loans commonly use a 40% threshold, with 50% and 70% used as higher-risk monitoring zones.

Inputs and regulatory zones

What is included

  • Mortgage, jeonse loans, credit loans, car loans, card loans, and other installment debts are included through annual principal and interest.
  • Credit-card and overdraft limits can affect available borrowing because unused limits may still be treated as credit capacity.
  • Jeonse guarantee amounts can be converted with a 2.5% reference in the Korean guide when estimating annual burden.
  • The main zones are 40% basic, 50% monitoring, and 70% danger.

Stress DSR stages

  • Stage 1 from February 26, 2024 applied +0.38%p to bank variable-rate mortgage loans.
  • Stage 2 from September 1, 2024 applied +0.75%p to bank and second-tier mortgage loans and credit loans.
  • Stage 3 from July 1, 2025 was planned for all household loans across all financial sectors with +1.50%p.
  • The stress rate is for repayment-capacity calculation, not necessarily the actual interest paid.

Examples

Stress-rate effect

  • A KRW 300,000,000 mortgage over 30 years at 4.0% principal-and-interest repayment has monthly payment about KRW 1,430,000 and annual debt service about KRW 17,200,000.
  • Adding +0.75%p raises the modeled monthly payment to about KRW 1,560,000 and annual debt service to about KRW 18,760,000, a 9.1% increase.
  • Adding +1.50%p raises the modeled monthly payment to about KRW 1,700,000 and annual debt service to about KRW 20,430,000, an 18.7% increase.

Income and debt scenarios

  • At a 40% DSR limit, annual income KRW 50,000,000 allows annual debt service KRW 20,000,000, or about KRW 1,670,000 per month.
  • Annual income KRW 80,000,000 allows KRW 32,000,000 per year, or about KRW 2,670,000 per month.
  • Annual income KRW 120,000,000 allows KRW 48,000,000 per year, or KRW 4,000,000 per month.
  • The Korean example of income KRW 80,000,000 with a KRW 400,000,000 mortgage at 4%, 30 years, plus a KRW 50,000,000 credit loan at 5%, 5 years, produces roughly 31% DSR.