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Debt-to-Income Ratio Calculator: Japan

Work out your debt-to-income ratio and see it against the rules lenders actually use where you live, from the US 28/36 to Ireland's loan-to-income cap.

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Japan: the hensai futan ritsu

Japanese lenders work from the hensai futan ritsu, the repayment burden ratio: the share of gross annual income going to all loan repayments, not just the mortgage. Most set the ceiling between 30% and 35%, and lower it for smaller incomes.

The closest thing to a published rule comes from the Japan Housing Finance Agency's Flat 35 programme, which states its criteria openly: total repayments of at most 30% of annual income below 4 million yen, and 35% at or above it. Private banks are not bound by those figures, but they are the reference point the market works from, which is why the limit here is labelled a market convention rather than a statutory one.

The quirk that catches borrowers out is the rate used in the assessment. Japanese mortgage rates are extraordinarily low, but many lenders do not assess you at the rate you will pay: they apply a notional rate well above it, so the payment inside the ratio is larger than the payment on your statement. A loan that looks comfortable at the contract rate can fail the burden ratio at the assessment rate.

Income is assessed before tax, and the ratio is measured annually rather than monthly, the same arithmetic, but Japanese lenders and this calculator's annual setting speak the same language.

For how the calculation works, the formula behind it and what it leaves out, see the full guide. For help interpreting a result or comparing it with a quote or statement, read the questions and answers.

Data sources

Japanese repayment burden conventionsJapan Housing Finance AgencyWithin its effective period

Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page that runs the calculator on them and cites the official sources they came from.

CentExactCalculator publisher

CentExact publishes the calculation method, worked examples and available data sources. Automated checks cover reference calculations; they do not certify a result for your circumstances or imply approval by a lender or tax authority.

How we build and test our calculators

This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.