How to Calculate Total Debt Servicing Ratio (TDSR) in Singapore: A Step-by-Step Guide
TDSR limits all monthly debt repayments to 55% of gross monthly income when you take a property loan.
Property is the largest purchase most Singaporeans make, and stamp duties, loan limits and cash requirements are front-loaded. Small mistakes in these figures can mean a shortfall at completion, so it pays to run the numbers before you commit to an option to purchase.
What you need
- Gross monthly income (S$)
- Existing monthly debt payments (S$)
Step by step
- Enter the gross monthly income (S$).
- Enter the existing monthly debt payments (S$).
- The results update as you type, or press Calculate.
- Read the total debt allowed (55%) first, then the supporting figures below it.
The formula
Room for new loan = 55% × income − existing monthly debts.
Worked example
For example, with these inputs:
- Gross monthly income (S$): 12,000
- Existing monthly debt payments (S$): 800
the calculator returns:
- Total debt allowed (55%): S$6,600.00
- Room left for a new mortgage: S$5,800.00
- Current TDSR: 6.67%
A second example
Now change the inputs to:
- Gross monthly income (S$): 15,000
- Existing monthly debt payments (S$): 800
the calculator returns:
- Total debt allowed (55%): S$8,250.00
- Room left for a new mortgage: S$7,450.00
- Current TDSR: 5.33%
Practical tips
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
- Stamp duty must be paid within 14 days of signing, so have the cash ready before you exercise the option.
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
Background
The Total Debt Servicing Ratio limits monthly debt repayments to 55% of gross monthly income for any property loan, and the Mortgage Servicing Ratio limits the housing instalment to 30% of income for HDB flats and new executive condominiums. Banks apply a medium-term interest rate in these tests rather than the rate you will actually pay.
Singapore's property market is shaped by cooling measures introduced since 2009, including Additional Buyer's Stamp Duty, loan-to-value limits and debt servicing ratios. These rules are adjusted when the market runs hot, so the numbers you see today may differ from what friends paid a few years ago.
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
Related calculations
- Property Affordability Calculator: Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
- Rental Yield Calculator: Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
Want to skip the arithmetic? The free Total Debt Servicing Ratio (TDSR) Calculator does all of this instantly and updates as you type.
Run your own numbers: Total Debt Servicing Ratio (TDSR) Calculator