Understand Debt-To-Income Ratio


A debt-to-income ratio indicates a person’s total monthly loan repayments against his gross monthly income. A high ratio indicates that a person may not have enough cash for his monthly needs.

As a general rule, your total monthly repayment on all your loans and credit card debt should not be more than 40% of your gross monthly income.

Let us see the example below to understand further on Debt-To-Income Ratio.

Debt to Income Ratio = Monthly fixed loan repayment / Gross monthly income x 100%

Existing monthly loan repayment,

  • Housing loan = 1000
  • Car loan = 600
  • Personal loan = 200
  • Credit Card = 5% x total outstanding balance. Katakan total OB skang 5000 = 250 (5% x 5000)

Gaji = 4000

Debt to Income Ratio = (1000 + 600 + 200 + 250) / 4000 = 51.25%

From the example above, the debt-to-income ratio is higher than the recommended amount of 40%.

5 Responses to Understand Debt-To-Income Ratio

  1. sheikh says:

    BNM also has made a new guideline by introduce a new debt service ratios
    ( dsr ).


  2. imran says:

    Salam admin,
    baru perasan web ni dah sambung semula setelah lama menyepi.. huhu.. :)

    nak tanya DTI ratio ni digunakan utk loan application ke?
    sekarang lagi susah utk lulus?


  3. sarina says:

    askm..saya nk tanya..saya dah buat loan 20k..gaji 2300. Htg kereta 1120 sebulan..mcm mn saya nak guna od atau plan kwgn yg boleh memudahkan saya menyelesaikan hutang kereta dan belanja bulanan saya


  4. this is just a recommendation right..


  5. MF says:

    skrg, DSR dikira berdasarkan NETT income, bukan lagi GROSS income.

    contoh : gaji RM4000, EPF yg ditolak dari payslip adalah RM400. jadi nett income adalah RM3600 shj.

    DSR : (hutang / 3600) * 100 % = %. DSR ini perlu kurang dari 70 %.


Leave a Reply

Your email address will not be published. Required fields are marked *

Connect with Facebook

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>