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Borrowing Power Calculator

Calculate how much you can borrow for a home loan. Enter your income, expenses, and deposit to see your borrowing capacity instantly.

Free & Instant·Realistic Estimates·Self-Employed Friendly

Calculate Your Borrowing Power

ⓘ Disclaimer: This borrowing capacity estimate is based on general lending criteria and is NOT a guarantee of approval. Lenders assess each application individually. Requirements and lending policies vary by lender. Confirm your actual borrowing power with your chosen lender before applying.
$

Annual salary or ABN business income

$

Leave blank if joint applicant

$

Rent, utilities, food, car, etc.

$

Car loans, credit cards, HECS debt

$

Cash savings for down payment

Your Borrowing Capacity

$380,000

loan amount

Total Property Budget

$480,000

(loan + deposit)

Loan-to-Value Ratio

79%

LVR (lower = less LMI)

How This Calculator Works

Enter your income, expenses, debt, and deposit. We calculate your borrowing capacity using the APRA serviceability buffer (9.5% test rate). This shows what you should qualify for based on standard lending criteria — your real pre-approval may be higher or lower depending on your credit, employment, and documentation.

The Math Behind the Number

  • Serviceability: Banks test whether you can repay at 9.5% (even if rates are 6%)
  • Formula: (Annual income – Annual expenses – Annual debt) ÷ 9.5% interest rate = Max loan
  • LVR: Loan-to-Value ratio. Below 80% = no LMI. 80–95% = LMI applies.
  • Add-backs: Self-employed? Depreciation, car expenses, and trust income often add $30K–$100K to your serviceability

What This Doesn't Include

  • Credit score (bad credit can reduce approval by $100K+)
  • Employment stability (contract workers may qualify for less)
  • Broker-only add-backs (depreciation, trust income, investment returns)
  • Specialist lender programs (self-employed, low-doc, visa holders)

Frequently Asked Questions

On a $100,000 salary, you can typically borrow 4–5× your income (after debts), or $350,000–$450,000. Banks use a 9.5% serviceability rate to test whether you can afford repayments if rates rise. Use our calculator to see your specific figure.
Self-employed and contract workers typically get assessed at 60–80% of their reported income (after add-backs), while PAYG employees get 100%. A broker can often unlock add-backs (depreciation, car expenses, etc.) to increase your serviceability.
Interest rates rising, expenses increasing, and existing debt all reduce borrowing power. On a $500K loan at 6%, a 1% rate rise reduces your borrowing capacity by ~$60,000. Use our calculator to test different scenarios.
Borrowing power is an estimate based on standard assumptions. Pre-approval is a bank's actual offer based on verifying your documents, credit score, and employment. Our calculator gives borrowing power — get pre-approval from a broker for an exact figure.
Yes. APRA's macroprudential rules require banks to stress-test borrowers at 3% above the actual interest rate (or 9.5% minimum). This is why banks approve less than you might expect. Our calculator uses 9.5% to match this.

Next Steps

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