Borrowing Power Calculator
A ballpark of how much you might borrow for a home loan. It works from your after-tax income, subtracts living costs and commitments, and stress-tests the loan at a rate 3% above the one you enter — the way lenders do.
Estimated borrowing power
$559,893
Monthly surplus for repayments
$4,501
Repayment at 5.99%
$3,353/mth
How the estimate is built
- Estimated after-tax income
- $7,001/mth
- Less expenses, debts & card commitment
- −$2,500/mth
- Surplus assessed for repayments
- $4,501/mth
- Assessed (stress-test) rate
- 8.99% p.a.
Reading the result
The figure is what your surplus could service at the buffered rate. The actual repayment shown is at the real rate you entered, so it’s lower — that gap is your safety margin if rates rise. Lenders use their own expense benchmarks and shade some income, so treat this as a starting point, not a pre-approval.
When you have a target loan size, check the rate against the market on our home loan comparison, then size up the repayments with the mortgage repayment calculator.
FAQs
How do lenders work out how much I can borrow?
They take your after-tax income, subtract living expenses and existing commitments, and stress-test the loan at a rate ~3% above the one you’ll pay, so you can cope if rates rise.
Why does a credit card limit reduce my borrowing power?
Lenders assess the limit, not the balance — even an unused card. They treat about 3.8% of the limit a month as a commitment. Reducing unused cards can lift how much you can borrow.
Is this the same number a bank will give me?
No — it’s a simplified estimate. Real assessments use the lender’s own expense benchmarks, shade some income, and factor in dependants and credit history. Treat it as a ballpark.
Is this calculator financial advice?
No — a general estimate only, using approximate tax figures and a standard buffer. Speak to a lender or broker before relying on a borrowing figure.
Estimates only, for general information. Uses approximate 2024–25 resident income tax plus the Medicare levy, a 3% serviceability buffer, and a notional 3.8% monthly commitment on credit card limits. Excludes dependants, lender expense benchmarks and policy differences. Not financial advice — confirm with a lender or broker.