LTV/DSR Calculator
Last updated: 2026-06-25
LTV (loan-to-value) = loan ÷ home price × 100; DSR (debt service ratio) = annual principal-and-interest ÷ annual income × 100.
The final loan limit is the lower of the LTV limit and the DSR limit.
LTV/DSR Calculation
Estimated LTV / DSR
0% / 0%
| Item | Value |
|---|---|
| LTV (loan ÷ home price) | |
| Annual principal-and-interest payment | |
| Monthly payment | |
| DSR (annual P&I ÷ annual income) | |
| Limit by LTV cap | |
| Limit by DSR cap | |
| Final available loan (lower of the two) |
Actual LTV/DSR caps and stress rates vary by regulated area and lender policy. For exact limits, check your lender or the Financial Supervisory Service.
How to use
- Enter home price and income — Enter the home price (or collateral value) and your annual income in KRW.
- Enter loan terms — Enter the desired loan amount, annual interest rate, term, and the limit basis (LTV/DSR caps).
- View the result — Click Calculate to see LTV, DSR, the LTV/DSR limits, and the final available loan amount.
How LTV and DSR are calculated
LTV (Loan To Value) is the loan ratio against collateral value, determining how much you can borrow relative to the home price. DSR (Debt Service Ratio) is the annual principal-and-interest burden relative to income, limiting the loan based on your ability to repay.
| Metric | Formula | Limit back-calc |
|---|---|---|
| LTV | loan ÷ home price × 100 | limit = home price × LTV cap |
| DSR | annual P&I ÷ annual income × 100 | limit = loan principal whose P&I fits within (annual income × DSR cap) |
Annual principal-and-interest is computed as monthly payment × 12, assuming equal principal-and-interest repayment. Monthly payment = principal × monthly rate × (1+monthly rate)^months ÷ ((1+monthly rate)^months − 1), where monthly rate = annual rate ÷ 12. The final loan limit is the lower of the LTV and DSR limits, so even with sufficient LTV, low income lets DSR constrain the limit. To compare repayment burden further, also see the guide Taxes and Costs When Buying a Home in Korea.
Frequently Asked Questions (FAQ)
How are LTV and DSR calculated?
LTV (loan-to-value) = loan amount ÷ home price × 100. DSR (debt service ratio) = annual loan principal-and-interest payments ÷ annual income × 100. LTV reflects the burden against collateral value, while DSR reflects it against income.
What are the LTV and DSR caps?
The LTV cap is typically 40-80% depending on regulated area, home price, and first-time-buyer status, while the DSR cap is commonly 40% at banks (50% at non-bank lenders). The actual limit is the lower of the two. This calculator back-calculates the limit from the caps you enter.
Why is my loan blocked by DSR even when LTV is sufficient?
Even if LTV meets the collateral-based limit, if your annual principal-and-interest payments exceed the DSR cap relative to income, only a smaller amount is lent. The final limit is the lower of the LTV and DSR limits, so low income lets DSR constrain the limit.
Does DSR include only the mortgage?
No. DSR sums the annual principal-and-interest payments of all household debt, including credit loans, car installments, and card loans, not just a new mortgage. This calculator assumes a single new loan, so DSR will be higher if you have existing debt.
Related calculators and guides
Acquisition Tax Calculator
Calculate acquisition tax when buying a home.
Registration Cost Calculator
Estimate total registration cost including the scrivener fee.
Brokerage Fee Calculator
Compute the sale brokerage fee cap.
Taxes and Costs When Buying a Home
A guide to all home-transaction costs in one place.
Last updated: 2026-06-25