DBR Calculator UAE (Debt Burden Ratio)
Calculate your debt burden ratio the way UAE banks do - including the 5% credit card limit rule - and see how much monthly payment room you have left before the Central Bank's 50% cap.
The debt burden ratio in the UAE: the 50% rule
What is the debt burden ratio (DBR)?
Your debt burden ratio is the share of your monthly income that goes to debt commitments: loan installments plus 5% of your credit card limits. Earn AED 20,000 with AED 7,000 of counted commitments and your DBR is 35%. It is the first number every UAE bank checks before approving a loan or card.
How do UAE banks calculate my DBR?
Banks add the monthly installments of your existing loans (mortgage, car, personal and others), add 5% of the combined limit of your credit cards, and add the installment of the credit you are applying for. The total is divided by your gross monthly salary plus regular verifiable income. Above 50%, the application cannot be approved under Central Bank rules - this calculator follows exactly that method.
Why do credit cards count as 5% of the limit, even if I pay in full?
Because a limit is credit you can draw at any moment, banks count 5% of your total card limits as a monthly commitment regardless of the balance. A card with an AED 40,000 limit adds AED 2,000 a month to your DBR even if you never touch it. Reducing or cancelling unused limits is usually the fastest way to free up borrowing room.
What is the maximum DBR allowed in the UAE?
The Central Bank of the UAE caps the debt burden ratio at 50% of monthly income: your total repayments, including the new loan, must stay within half of what you earn. For pensioners the ceiling is lower, at 30% of pension income.
What can I do if my DBR is above 50%?
Three levers work best: consolidate several loans into one with a longer tenor so the single installment is lower; pay off and cancel unused credit cards, since every AED 10,000 of limit you remove frees AED 500 of monthly headroom; or extend the tenor of an existing loan to shrink its installment. Documented extra income - a raise, verified rental or commissions - also brings the ratio down.
How does my DBR affect loan approval?
It decides both the answer and the amount. Banks work backwards from your headroom: with AED 3,000 of room under the cap, the most they can offer is whatever loan produces an installment of AED 3,000 or less. A lower DBR also strengthens your negotiating position, since low-DBR borrowers are lower-risk customers.
Does the DBR include the loan I am applying for?
Yes. The bank adds the proposed installment to your commitments before checking the 50% cap - exactly what the optional new payment field in this calculator simulates. If it pushes you over 50%, expect a rejection or a smaller counter-offer.
Final note
Your DBR tells you how much installment you can afford - the loan size that installment buys depends on rate and tenor. Estimate the payment first with our personal loan calculator, car loan calculator or mortgage calculator, then run it through the DBR check above. Results are educational estimates, not financial advice.