FREE PLANNING TOOLS
Borrowing capacity calculator
Explore how income, expenses and existing commitments shape an indicative borrowing limit.
Borrowing capacity
Change the example figures to explore your own scenario. Results update as you type.
View the result breakdown
Calculations stay in this page. Your figures are shared only if you choose to include them with an enquiry.
Assumptions, rates and methodology
An indicative scenario, not approval, a quote or personal financial advice. Rates remain constant. Confirm your circumstances, eligibility and current costs with an appropriately authorised professional.
Rates effective 2026-07-01 to 2027-06-30 · Last reviewed 2026-09-21.
Read the full methodologyGeneral information only, not financial advice. Results are estimates based on the assumptions you select.
How much could you borrow?
A useful borrowing estimate starts with your budget, not a headline interest rate.
Start with the income you can rely on
Enter annual income before tax and exclude employer super. For a joint application, enter each applicant separately so the estimate can apply the resident income-tax bands to each person. Include rental income before its property costs and enter ongoing loan commitments in the expenses section. Irregular earnings are not always treated the same way as salary. The calculator applies an adjustable assessment percentage to rental and other income; a lender may use a different percentage or decline to include that income.
Build a complete picture of expenses
Your everyday budget should reflect how you actually live. Add groceries, transport, utilities, insurance and regular personal spending, without repeating amounts in the special-expenses section. Private school fees, child support and other commitments can materially change capacity. Rent that continues after buying an investment property also belongs in the calculation. The tool uses your declared living expenses or an illustrative household floor, whichever is higher. That floor is a planning assumption, not a lender assessment or a licensed expenditure benchmark.
Why the assessment rate is higher
A lender considers whether repayments could still be manageable if rates rise. This calculator adds the configured buffer to the product rate and compares the result with a minimum assessment rate. It uses the higher rate when estimating capacity. Your displayed product-rate repayment is a different number: it helps illustrate the starting cashflow on the estimated loan. Neither figure is an offer. The assessment buffer, floor and household assumptions are visible and can be reviewed with your scenario.
Credit cards and existing loans matter
A credit card can affect borrowing capacity even when its balance is zero. The model estimates a monthly commitment from your combined card limits. Enter current home-loan repayments and other debt repayments separately. The debt balance field is used for the debt-to-income indicator and does not replace the repayment fields. Before reducing a limit or closing an account, consider your own needs and ask how a proposed lender would assess it. A change that helps one application may not produce the same result elsewhere.
A borrowing limit is not a buying budget
The purchase price must also fit your deposit, stamp duty, legal fees, inspections, settlement adjustments and any lenders mortgage insurance. Keep a separate cash reserve rather than assuming every dollar of savings can go towards settlement. The purchasing power calculator combines a borrowing limit with those costs. An estimate at the maximum limit can still leave a household uncomfortable with repayments. Consider an amount below the result, and test a higher interest rate and changes to household income.
Use the result to prepare a useful conversation
Bring a realistic income breakdown, recent expenses, credit-card limits and outstanding debts to a consultation. Note whether you are buying a home or investment, whether rent continues, and whether an interest-only period is being considered. A professional assessment also considers documents, employment history, credit history, property security, loan purpose and the lender’s current policies. The calculator cannot check those matters or provide pre-approval. Sharing the scenario with an enquiry is optional; you can use and print the results without supplying contact details.
Further reading
Your questions, answered
Is this a lender approval?
No. It is an indicative model using disclosed assumptions. A lender must assess your application, documents and property.
Why does my partner’s income change the result?
Income tax is assessed separately for each applicant, while the household budget and commitments are considered together.
Does it include HELP repayments?
Yes, when selected. Include relevant repayment-income additions. It does not calculate a final tax assessment or account for the remaining HELP balance.
Can I use the calculator without signing up?
Yes. The calculation is free and runs in your browser. Contact details are only requested if you choose to enquire.