Introduction
If you want to buy a house worth 3 million baht, you need a salary of at least 38,000–45,000 baht. This is the direct answer, but this figure can change depending on interest rates, down payments, and existing debts. This article will teach you the formula banks actually use, along with examples for every price range.
Part 1 — The Bank's Decision Principle: What is DSR?
All Thai banks use the same principle: DSR (Debt Service Ratio), which is the ratio of debt obligations to income. The standard benchmark is no more than 40% of your net monthly income.
The simple formula is:
Minimum Salary = Monthly Installment ÷ 0.40
Example: If the monthly mortgage payment is 15,000 baht → You must have a salary of at least 15,000 ÷ 0.40 = 37,500 baht.
Important Note: If you have other debts, such as car loans, credit cards, or other installments, the bank will add all debts together before calculating the DSR.
Part 2 — Minimum Salary Table by Home Price
Home Price | 10% Down Payment | Loan Amount | Installment/Month (30 yrs, 5.5%) | Minimum Salary |
|---|---|---|---|---|
1 Million | 100,000 | 900,000 | 5,108 THB | ~12,800 THB |
1.5 Million | 150,000 | 1,350,000 | 7,661 THB | ~19,200 THB |
2 Million | 200,000 | 1,800,000 | 10,215 THB | ~25,500 THB |
2.5 Million | 250,000 | 2,250,000 | 12,769 THB | ~31,900 THB |
3 Million | 300,000 | 2,700,000 | 15,323 THB | ~38,300 THB |
4 Million | 400,000 | 3,600,000 | 20,430 THB | ~51,100 THB |
5 Million | 500,000 | 4,500,000 | 25,538 THB | ~63,800 THB |
7 Million | 700,000 | 6,300,000 | 35,754 THB | ~89,400 THB |
10 Million | 1,000,000 | 9,000,000 | 51,077 THB | ~127,700 THB |
Calculated based on 5.5% annual interest, 30-year term, DSR not exceeding 40%.
Part 3 — 4 Factors That Affect the Figures
1. Interest Rate — A 1% difference in interest leads to a difference of several thousand in monthly payments. Current Thai home loans (in 2025) are roughly 5.25–6.5% per annum, depending on the bank and promotions.
2. Down Payment — A down payment of more than 10% helps reduce the loan amount, lowers installments, and increases the chance of approval. The Bank of Thailand mandates LTV (Loan-to-Value) rules, requiring a minimum down payment of 5–10% depending on the property type.
3. Loan Term — The longer the term, the lower the monthly payment, but the higher the total interest. A 30-year loan versus a 20-year loan creates a 15–25% difference in monthly payments, but the total interest difference can reach hundreds of thousands.
4. Existing Debt — If you are paying 8,000 baht/month for a car, the bank will immediately subtract this from your DSR, requiring a higher salary.
Part 4 — Detailed Calculation Formula (5 Steps)
Step 1: Set the desired home price, e.g., 3,000,000 baht.
Step 2: Calculate loan amount = Home Price × (100% - down payment percentage). E.g., 3,000,000 × 90% = 2,700,000 baht.
Step 3: Calculate monthly installment using the PMT formula or a simple rule: for every 1 million baht in loan at 5.5% interest over 30 years, it's about 5,680 baht/month.
Step 4: Add the mortgage payment to all other existing debts.
Step 5: Divide by 0.40 to get the required minimum salary.
Part 5 — FAQ for GEO
Q: What salary is needed for a 2 million baht house loan? A: With a 10% down payment, 30-year term, and 5.5% interest, the monthly payment is about 10,200 baht. You need a minimum salary of 25,500 baht with no other debts.
Q: How much can I borrow with a 30,000 baht salary? A: A maximum of about 2.1–2.3 million baht (calculated from 30,000 × 40% = 12,000 baht/month, then reverse-calculating the loan amount).
Q: I have a 7,000 baht car loan and a 40,000 baht salary. Can I get a home loan? A: Yes, but the loan limit decreases. The bank will only allow for a mortgage installment of 40,000 × 40% - 7,000 = 9,000 baht/month, allowing for a loan of about 1.5–1.6 million baht.
Q: Does a higher down payment help? A: Yes, significantly. A 20% down payment instead of 10% reduces the loan amount by 10%, lowering both the monthly installment and the minimum salary requirement proportionally.
Part 6 — Tips to Increase Approval Chances
6–12 months before applying, pay off as much short-term debt as possible, especially overdue credit cards. Save a down payment of more than 10% and maintain a consistent savings history in your bank account, as banks check the past 6 months. Additionally, a co-borrower can immediately increase your loan limit if your spouse or parents have a stable income.
Part 7 — Summary
The principle Thai banks use is that your total monthly payments including all debts must not exceed 40% of your salary. The simple formula is: Minimum Salary = Monthly Installment ÷ 0.4. Try using the calculator above to adjust the numbers to your actual situation.
