Korea DSR Calculator (Debt Service Ratio)
Calculate Korea's DSR (Debt Service Ratio) with 2026 Stress DSR Stage 3 rules. Check your maximum loan amount for banks and non-bank lenders.
About This Tool
The DSR (Debt Service Ratio) Calculator computes your total debt-to-income ratio, which Korean banks use to determine your maximum borrowable amount. Enter your annual income and all existing loan repayments to check if you meet the DSR threshold (typically 40% for banks, 50% for non-bank lenders).
Income
5,000만원
New Loan Details
Existing Loans (optional)
⚠ This calculator is for reference only. Actual DSR is determined by the financial institution's system. Results may differ based on income verification criteria and specific loan regulations.
What is DSR?
DSR (Debt Service Ratio) is the ratio of a borrower's total annual principal and interest payments on all financial institution loans to their annual income. It includes not only mortgages but also personal loans, auto loans, student loans, and card loans. Banks are limited to DSR 40%, while non-bank lenders are limited to DSR 50%.
DSR vs DTI
| Category | DTI | DSR |
|---|---|---|
| Mortgage | Principal + Interest | Principal + Interest |
| Other Loans | Interest Only | Principal + Interest |
| Strictness | Looser | Stricter |
Stress DSR Stage 3 (2026)
Stress DSR preemptively reflects potential future rate increases. A stress rate is added to the actual loan rate for screening purposes.
| Region | Stress Rate | Note |
|---|---|---|
| Capital (Seoul/Gyeonggi/Incheon) | 3.0% | Upper limit |
| Non-capital | 0.75% | Grace until 2026.6.30 |
DSR Exempt Loans
- Jeonse (lump-sum deposit) loans
- Interim payment loans (new apartment construction)
- Small credit loans under 3 million KRW
- Government social finance products
- Policy mortgages (Didimdol, Bogeumjari)
- Housing & Urban Fund loans
Tips to Increase Your Loan Limit
- Choose fixed rate → 0% stress rate makes the review rate lower
- Extend loan term → Lower annual payment reduces DSR
- Pay off existing debts → Clear small loans and card loans first
- Add income sources → Side jobs, rental income, pensions
- Consider non-capital region → Lower stress rate (0.75%)
- Use equal payment method → Lower annual repayment vs interest-only
How to Use
- Enter your annual income (in 10,000 KRW units).
- Set new loan amount, rate, term, repayment method, and rate type.
- Select loan region (capital/non-capital) and lender type (bank/non-bank).
- Add existing loans using the 'Add Existing Loan' button if applicable.
- Review your DSR ratio, max loan amount, and stress rate details in the results.
Frequently Asked Questions
What is DSR (Debt Service Ratio)?
DSR is the ratio of a borrower's total annual principal and interest payments on all debts to their annual income. Unlike DTI which only counts mortgage principal and interest of other loans, DSR includes all loan repayments: personal loans, auto loans, student loans, etc.
What is the difference between DSR and DTI?
DTI counts mortgage principal & interest plus only the interest on other loans. DSR counts both principal and interest on ALL debts, making it a stricter measure. Since 2021, DSR has become the primary loan screening criterion in Korea.
What is Stress DSR?
Stress DSR adds an extra interest rate buffer (stress rate) on top of the actual loan rate to account for potential future rate increases. Under 2026 Stage 3 rules, capital region mortgages get up to 3.0% added, while non-capital regions get 0.75% (grace period).
Which loans are exempt from DSR?
Jeonse (lump-sum deposit) loans, interim payment loans (new construction), small credit loans under 3 million KRW, government-backed loans (Didimdol, Bogeumjari), and social finance products are either exempt or subject to relaxed DSR rules.
How can I increase my loan limit?
Choose a fixed rate (0% stress rate applied). Extend the loan term to reduce annual payments. Pay off existing debts. Add income documentation (side jobs, rental income). Consider non-capital region properties for lower stress rates.
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How It's Calculated
DSR = (Total Annual Loan Repayments ÷ Annual Income) × 100%
Total Annual Loan Repayments include: • Mortgage: annual principal + interest payments • Credit loans: annual repayments (or minimum if revolving) • Auto loans: annual installment payments • Student loans: annual repayments • Any other debt obligations
Korean regulations (as of recent policy): • Banks: DSR cap of 40% • Non-bank financial institutions: DSR cap of 50% • Stress DSR: applied with a buffer rate (+0.25%–1.5%) above current rates
Maximum Additional Borrowing = [(DSR Limit × Annual Income) − Current Annual Repayments] converted to loan principal using the amortization formula.
⚠️ Disclaimer
DSR regulations and thresholds are subject to change by the Financial Services Commission. Each financial institution may apply different criteria for income verification and loan classification. Contact your lender for an official DSR assessment.