📊 DSR Calculator (Debt Service Ratio, Korea)
See what percentage of your income goes to principal and interest on all your loans (DSR), and how much more you can borrow under the 40% bank limit.
How to use
- Enter your annual pre-tax income. Unless the product lets you combine incomes, use only your own.
- Add up to three existing loans. Personal loans and credit lines are treated as repaid over 5 years regardless of their real maturity, as the DSR rules require. For a credit line (maineoseu tongjang), enter the full limit, not what you have drawn.
- Enter the new loan’s amount, rate, term and repayment type. For variable or hybrid rates, pick the stress rate add-on.
- The result shows your DSR and works backwards to the largest new loan within the limit.
What is DSR?
DSR (debt service ratio, chongbuchae wonrigeum sanghwan biyul) is the annual principal and interest on every loan you have, as a share of your annual income. It includes not only mortgages but personal loans, credit lines, car installments and card loans. Since July 2022 it has applied to each borrower individually once total loans exceed ₩100M, and it is now the single most important factor in how much a Korean bank will lend you. It is close in spirit to the US back-end debt-to-income ratio, but it is a legal cap rather than an underwriting guideline.
How it is calculated
DSR (%) = annual (principal + interest) on all loans ÷ annual income × 100
| Loan type | Annual payment counted in DSR |
|---|---|
| Mortgage (amortizing) | Actual annual principal + interest |
| Personal loan | Principal ÷ 5 years + interest |
| Credit line | Limit ÷ 5 years + interest |
| Jeonse deposit loan | Interest only (counted for one-home owners in the capital region and regulated areas) |
| Other bullet loans | Principal ÷ loan term + interest |
Example: income ₩60M and a ₩30M personal loan at 5.5% → ₩6M + ₩1.65M = ₩7.65M a year. Add a ₩300M mortgage (4%, 30 years) at ₩17.19M a year and DSR is about 41.4%, just over the 40% bank limit.
The 40% limit and stress DSR
Above 40% at banks, or 50% at non-bank lenders (savings banks, insurers, card companies), new loans are generally refused. Stress DSR adds a buffer rate to variable and hybrid loans when computing DSR, to reflect the risk of rising rates. As of October 2026 the third stage is in force: 3 percentage points for mortgages in the capital region and regulated areas, 1.5 points elsewhere, and 0.75 points for some mortgages outside the capital region. It only shrinks your limit — you do not actually pay the extra interest.
DSR vs. DTI
DTI adds mortgage payments plus only the interest on other loans; DSR adds other loans’ principal as well. That is why a personal loan or an unused credit line fills your DSR quickly — and why paying down a personal loan or cutting an unused credit line before applying can raise your mortgage limit.
Notes for foreign residents
Banks count only loans and income they can see in Korea’s credit system, but they may ask about overseas debt. Newly arrived residents with a short Korean income history often get a lower recognized income, which directly lowers the DSR-based limit.
Korean lending rules change often with government housing measures. Figures are examples as of October 2026; your real limit depends on the bank’s review (how your income is recognized, credit score, property type, policy loan eligibility and, for foreign nationals, your visa and residence status). Always confirm with the Financial Services Commission announcements and the bank you plan to use.