DSRCalculator: Understanding Debt Service Ratio (DSR) in Personal Finance 💰

Hilman Ahmad
Published in
3 min readOct 16, 2023


Photo by Alexander Mils on Unsplash

Hey Hey, I’m Hilman Ahmad. from the TornadoByte. I haven’t written on Medium in a long time. So yeah, I will write some financial articles related to our new project releases, called DSRCalculator.


A debt service ratio (DSR) evaluates a person’s capacity to handle their debt commitments. A lower DSR signifies a healthier financial state because it suggests that less of the income is going towards debt-related obligations, leaving more money for other uses. On the other hand, a high DSR may indicate a higher likelihood of financial distress and difficulties making debt payments. DSR is a crucial tool for budgeting and decision-making because lenders frequently use it to assess a borrower’s creditworthiness and eligibility for a loan. DSR is not only a measure of financial health but also a critical tool for making sound financial decisions. It underscores the importance of managing debt effectively as a fundamental aspect of personal finance, leading to greater financial security and opportunities for achieving one’s financial goals.

Our Motivation

I’ve been wanting to apply for a loan to buy a property for the past two years. I’ve designated one of the agents, and I’ll be meeting them there. According to the agent, a minimum DSR of 60% is needed to pass a loan application in order to submit one. In order to calculate the DSR for loan eligibility, they sent me a WhatsApp after our meeting asking me to respond to a few of my commitments, including how much my salary is and liabilities like housing loans, car loans, education loans, and so on. I noticed that this is extremely manual, so I wondered: What if the user provided access to tools that would allow them to enter data and calculate the outcomes of their calculations?

Photo by Tierra Mallorca on Unsplash

Ideas of DSRCalculator

TornadoByte has decided to develop DSRCalculator, one of its financial tools for calculating the DSR. This application allows users to enter some of the necessary information, such as their income and commitments, in order to determine their DSR percentage within the acceptable range. With the interactive user interface, users can also experiment with the range and their remaining debt after submitting the loans.

This application was completed in one month by using the Next.js framework and Material UI as a library. As this DSRCalculator was being developed, we appointed a number of bankers and agents friends to gather real-time feedback and opinions. As a disclaimer, DSR eligibility for loan application success varies depending on the position, occupation, wage, age, and many other factors for individual applicants. As a result, this DSRCalculator is only intended to provide general information; for more precise financial eligibility, see your banker or agent.

See you.