Debt Service Ratio (DSR) is the share of income used for debt payments. It can help show how existing and proposed installments compare with income. The Bank of Thailand defines a standard reporting calculation as total monthly debt payments divided by total income. The referenced formula was updated in 2019 and is not a universal loan-approval rule for every financial institution.
The associated video discusses debt management generally, not the DSR formula. This article uses the Bank of Thailand document and shows a basic way to estimate the ratio.
A Basic Formula
DSR = (current monthly debt payments + estimated new monthly payment) ÷ total monthly income × 100%.
Example: With total income of 40,000 baht, current installments of 10,000 baht, and a possible new payment of 6,000 baht, total payments would be 16,000 ÷ 40,000 = 40%. This demonstrates the arithmetic; it does not guarantee loan approval or show a ratio suitable for everyone.
Information to Include
- Home, vehicle, and installment-loan payments.
- Credit-card or revolving-credit obligations, using the lender’s definition.
- Joint debts and guarantees that could become a liability.
- Verifiable income and how much it varies.
- Essential expenses, emergency savings, and bills that do not occur every month.
A low DSR does not automatically mean borrowing is suitable, and a high ratio alone does not determine a lender’s decision. Lenders may assess income, payments, and risk differently. Use this figure as a budgeting starting point and ask a lender about its actual criteria. If you have several debts, read how to organize debt information before planning payments and how to account for BNPL installments in your expenses.
Sources
- Bank of Thailand: Summary of the DSR calculation standard
- Bank of Thailand: Factors to consider before taking on debt
Updated 16 October 2026. The example is a basic estimate. The cited DSR standard is from 2019 and should not be treated as a lender’s current approval policy. The associated video does not explain DSR.