Three inputs, one division. The skill is in getting the inputs right — here is each one as a bank sees it, followed by worked examples.
Step 1 — Gross monthly income
Use your full documented income before deductions: basic salary plus regular allowances (housing, transport) as shown on your salary certificate. Irregular bonuses and undocumented income don’t count.
Step 2 — Monthly debt payments
Add every EMI: personal loans, car loans, mortgage. If you guarantee someone else’s loan, many banks include it too.
Step 3 — The credit card 5% rule
Total all your credit card limits — every card, used or not — and take 5%. This is the step most people miss, and it’s explained in depth in DBR and credit cards.
Worked examples
| Scenario | Income | EMIs | Card limits (5%) | DBR |
|---|---|---|---|---|
| Young professional | AED 10,000 | AED 1,200 | 15,000 (750) | 19.5% ✓ |
| Family, car + personal loan | AED 18,000 | AED 6,500 | 40,000 (2,000) | 47.2% — borderline |
| Over-committed | AED 12,000 | AED 5,500 | 30,000 (1,500) | 58.3% ✗ over cap |
The second scenario is the instructive one: only AED 500/month of headroom remains, so a new AED 800/month car loan would push them past 50% and be declined — but cancelling an unused card with a AED 20,000 limit frees AED 1,000/month instantly.
Skip the arithmetic — get your DBR with headroom in AED
Frequently asked questions
What is the DBR calculation formula?
DBR = (total monthly debt payments + 5% of total credit card limits) ÷ gross monthly income × 100. A result at or below 50% is within the Central Bank cap.
Is DBR calculated on gross or net salary?
Gross salary — your full documented income before deductions, including regular allowances. Banks verify it from your salary certificate and bank statements.
How do banks calculate DBR for credit cards?
Each card contributes 5% of its limit per month, regardless of the balance. Two cards with AED 15,000 limits each add AED 1,500/month to your obligations.
Sources: Central Bank of the UAE, Regulations Regarding Bank Loans & Other Services Offered to Individual Customers (Circular No. 29/2011) and subsequent CBUAE consumer protection regulations. Figures reflect the regulatory framework; individual banks apply their own criteria within it. See How We Calculate.