How to Calculate TDSR for a Home Loan in Singapore

TDSR is an affordability check, not just a banking acronym. It looks at whether you can carry the new mortgage together with your existing monthly debt commitments.

That matters because it is easy to focus on income and downpayment, while banks focus on debt burden. You can earn well and still have limited loan room once car instalments, personal loans, renovation loans, or revolving card balances are factored in.

The practical point is this: TDSR is often the rule that quietly resets your budget. You might shortlist a unit based on headline salary, but financing may point to a lower price range once total debt is counted.

MAS explains the framework in its MSR and TDSR rules explainer. For the bigger financing picture, pair this with the pillar guide on Singapore property loan rules: TDSR, MSR and LTV explained.

A simple way to hold it: TDSR asks how much of your gross monthly income is already spoken for by debt.

Work out your own TDSR and maximum loan on the Property Financial Planner.

The core formula is simple:

TDSR = total monthly debt obligations ÷ gross monthly income × 100

The important point is what goes into the numerator. It is not just the new home loan. It is the new home loan plus your other recurring monthly debt repayments.

A simplified example:

• Gross monthly income: $10,000
• Existing monthly debt repayments: $2,000
• Estimated new mortgage instalment: $3,000
• Total monthly debt obligations: $5,000
• TDSR: 50%

That example is only a rough screen, not a loan approval. Banks assess the mortgage instalment using a stress-test rate rather than the advertised package rate. As of 2026, MAS requires residential loan instalments to be computed at the higher of a 4% floor or the loan's thereafter rate, which is more conservative than most promotional rates. To understand that difference, see the guide on what stress test interest rate banks use for TDSR.

As of 2026, MAS caps TDSR for property loans at 55% of gross monthly income (this took effect for options granted on or after 16 December 2021; it was 60% before). Rules change, so verify the current figure on MAS or with your bank.

The mortgage is not tested on its own. It is tested on top of everything else you already owe. For a broader overview, see How Banks Assess Income for a Home Loan in Singapore.

This is one of the most common mistakes. It is tempting to quote the amount credited into your bank account, but TDSR starts from gross income before deductions such as CPF and income tax.

Fixed salary is usually the easiest part of the file to assess. Other income types, such as commission, bonus, rental income, or self-employment income, may still be considered, but banks do not always treat them the same way. In fact, as of 2026 MAS applies a haircut of at least 30% to variable income (commission, bonus, allowances) and to rental income when it is used to support a loan, so only part of that income counts. Verify the current treatment on MAS or with your bank. That is why two buyers with similar headline income can end up with different assessed borrowing power.

A useful step is to work out early how your income is structured:

• Mostly fixed salary
• Part salary, part commission
• Self-employed or business income
• Rental income supporting the application

That quick classification tells you whether the case is straightforward or whether an early bank check is worthwhile. Common supporting documents in practice include payslips, CPF contribution history, IRAS/NOA records, bank statements, and tenancy documents, depending on the income type. For a deeper breakdown, see the guide on how banks assess income for a home loan in Singapore and DBS's overview of what to know about TDSR.

Gross income is the starting point. Documented, usable income is what the bank finally works with. For a broader overview, see What Is In-Principle Approval (IPA) for a Home Loan in Singapore?.

A practical way to screen this is: if it creates a recurring monthly repayment, assume it may affect TDSR until the bank confirms otherwise.

The items most people forget are the ones that create bad surprises later: guarantor commitments, maintenance or alimony obligations, and other recurring credit facilities. Not every lender treats every obligation identically, but it is worth listing them early even if you feel "basically debt-free."

A useful habit: write a plain-English debt list rather than answering a vague "any loans?" Specifics are easier to remember when the question is, "Any car instalment, renovation loan, student loan, or card balance being repaid monthly?". For a broader overview, see TDSR vs MSR: What's the Difference?.

A quick TDSR check does not need to be perfect. It needs to catch obvious overreach before you anchor on a price you may not be able to finance.

Use this four-step workflow:

1. Start with gross monthly income, not net pay.
2. List every recurring monthly debt you still have to service.
3. Estimate the likely mortgage instalment for the target purchase.
4. Add the debts together and compare the total against the applicable TDSR limit.

A simplified screening example helps. If you earn $12,000 gross a month, and the current TDSR cap of 55% is applied, total monthly debt room would be about $6,600. If you already have $2,500 of other monthly debt repayments, only about $4,100 remains for the assessed mortgage instalment. As of 2026 the cap is 55%, but confirm the current figure and the lender's assessment basis on MAS or with your bank before you rely on it.

If the rough total is already near the limit, treat the case as stretched. The practical next moves are usually to:

• reduce the target purchase price
• increase the cash downpayment if feasible
• or get an IPA/AIP before making a firm offer

Do the financing screen before the property shortlist becomes emotional. For a broader overview, see What Stress Test Interest Rate Do Banks Use for TDSR?.

Most bad TDSR estimates come from the same predictable errors.

Common mistakes to watch for:

• Using take-home pay instead of gross monthly income.
• Leaving out car loans, personal loans, renovation loans, student loans, or card repayments.
• Assuming all commission, bonus, rental, or self-employment income will be counted the same way as fixed salary.
• Forgetting less obvious obligations such as guarantor commitments or maintenance payments.
• Quoting a "safe budget" based only on TDSR without checking downpayment, completion costs, and real monthly cash flow.
• Treating an online calculator result as guaranteed approval.

The last mistake is the most dangerous in practice. You can look fine on a rough calculator and still be cut back later because the lender applies conservative instalment assumptions or recognises income differently once documents are reviewed.

A useful rule: if the case is borderline, stop estimating and start verifying.

The clearest way to hold TDSR is as budgeting, not banking jargon:

"TDSR is the bank's check on whether your total monthly debt payments, including the new home loan, are still manageable based on your gross monthly income."

If you are feeling confident about affordability, it helps to remember:

"Salary is only one part of the picture. The bank also counts your other monthly commitments before deciding how much loan room is left."

If you are feeling anxious about it:

"This is not a rejection label. It is an early affordability check, so you don't waste time on homes that stretch the budget too far."

TDSR is easier to work with once you see it as a planning tool, not a mysterious bank hurdle.

If you are a serious buyer, an AIP or IPA is often the safer move before a firm offer. It lets you test the financing story before negotiation, option timelines, and expectations become harder to unwind.

It is especially useful when you:

• are close to the likely TDSR limit
• have had recent job changes
• rely on commission, bonus, rental, or self-employment income
• have existing debts that may be easy to under-report or misunderstand

An IPA is still not final approval, but it is materially more useful than relying on a rough calculator alone. To understand the process, pair this with the guide on what is in-principle approval (IPA) for a home loan in Singapore?.

For a quick market sanity check, you can compare rough results against the PropertyGuru TDSR calculator or MoneySmart's TDSR calculator, then verify the case directly with the lender.

Verified figures. Financing figures here come from MAS (TDSR/LTV rules) and CPF — as of 2026; loan rules and rates change, so confirm the current limits with MAS and your bank before you rely on them.

What we have not claimed: the loan amount or approval for any specific borrower (check your bank); a rate quote; or financial advice — a practical explainer only.