How Much Can I Borrow? Borrowing Power Calculator
Enter your income, living costs and debts to estimate how much a lender may let you borrow. The calculator applies the 3% serviceability buffer lenders must use and the HEM living-cost benchmark, so the result is closer to what a bank will actually work out.
- Assessment rate
- 9.00%
- Repayment at your rate
- $2,578/mo
- Living costs used
- $2,500/mo
- Monthly surplus
- $3,461/mo
Disclaimer: This calculator gives an indicative estimate only, based on the information you enter and assumptions including a 3% serviceability buffer, HEM benchmarks and current ATO income tax rates. It isn't an offer or approval of credit and doesn't take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply.
How the calculator works
- Income after tax
- Your salary, bonuses, rental and other income, taxed at current ATO rates. Lenders may count only part of overtime, bonus and rental income.
- Living expenses
- The higher of what you enter or the Household Expenditure Measure (HEM) for your household size and income.
- Existing debts
- Repayments on car and personal loans, plus about 3–3.8% of each credit card limit a month, even if the card is paid off.
- Assessment rate
- The loan's interest rate plus the 3% buffer APRA expects lenders to apply.
- Result
- The largest loan whose repayments at the assessment rate fit within your surplus income.
Why lenders' answers differ
Each lender treats income, expenses and debts slightly differently. Since February 2026, banks also limit how much of their lending can go to borrowers at six or more times their income. That's why the same borrower can get noticeably different limits from different lenders, and why a broker comparing many lenders can help.
Ways to increase your borrowing power
- Cut or close unused credit card limits
- Pay off small personal loans or buy now pay later balances
- Show steady savings and tidy bank statements for 3 months
- Apply jointly if you're buying with a partner
- Choose a longer loan term (more interest overall, so weigh it up)
Calculator questions
Is this my approved limit?
No. It's an estimate. Only a lender's full assessment gives a pre-approval.
Does it include stamp duty and costs?
No. Allow for transfer duty (unless exempt), legal fees, inspections and possibly LMI. First home buyers: see our First home buyers page.