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Estimate your borrowing power based on your income, living expenses, existing debt repayments, deposit, interest rate and loan term.

Borrowing Power Calculator

How to Use This Borrowing Power Calculator

Enter a few details to estimate how much you may be able to borrow.

Enter your annual income — use your gross income before tax.
Add your monthly expenses and debt repayments — include regular living costs and existing loan or credit repayments.
Enter your available deposit — the amount you plan to contribute toward the purchase.
Enter the interest rate and loan term — use these to model your potential loan.
Adjust the assessment buffer and repayment limit — these settings can create a more conservative borrowing estimate.
Review your results — see your estimated borrowing power, repayment budget and potential property price.

The calculator updates automatically as you change the figures, so you can compare different income, expense, deposit and interest-rate scenarios.

Keep in mind: This is a general estimate only. Actual borrowing capacity can vary significantly between lenders and may depend on your expenses, debts, credit profile, location and lending criteria.

How It Works

A borrowing power calculator estimates how much you may be able to borrow based on your income, living expenses, existing debt repayments, interest rate and loan term.

The calculator first estimates how much of your income may be available for loan repayments after accounting for the expenses and debts you enter.

It then applies the selected loan term and assessment interest rate to estimate an indicative loan amount. A higher assessment rate generally reduces borrowing power because the calculation assumes higher repayments.

Your borrowing estimate can change when you adjust your details. For example:

Higher income may increase borrowing power.
Higher living expenses may reduce borrowing power.
Existing debt repayments reduce the income available for a new loan.
Higher interest rates generally reduce the amount you may be able to borrow.
A longer loan term can reduce the estimated monthly repayment required for a given loan amount.

The result is an indicative estimate, not a loan approval. Actual lenders may use different serviceability calculations, expense benchmarks, assessment rates and lending criteria.

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What is a Borrowing Power Calculator?

A borrowing power calculator is a financial tool that estimates how much you may be able to borrow based on your income, expenses, existing debts and other loan details.

Your borrowing power represents the approximate amount a lender may be willing to lend you. It can be useful when planning a home purchase, comparing loan scenarios or deciding what price range may be realistic before approaching a lender.

Several factors can affect your borrowing capacity, including:

Income — generally, higher income can support higher repayments.
Living expenses — higher regular expenses can reduce the amount available for loan repayments.
Existing debts — car loans, personal loans, credit cards and other commitments can reduce borrowing capacity.
Interest rates — higher rates generally mean higher repayments and lower borrowing power.
Loan term — the length of the loan affects the repayment used in the estimate.
Deposit — your available deposit can affect the property price you may be able to consider.

A borrowing power calculator can help you set a realistic property budget, compare different scenarios and understand how changes to your finances could affect your borrowing capacity.

Keep in mind that the result is an estimate rather than an approval or lending offer. Each lender uses its own assessment criteria, and your actual borrowing capacity may differ.

What Can Affect Your Borrowing Power?

Your borrowing power can vary significantly depending on your financial situation and the lending criteria used by different lenders. Understanding the main factors can help you see why your estimated borrowing amount may change.

Income
Your income is one of the main factors affecting borrowing capacity. Higher and more stable income can generally support larger loan repayments.

Living expenses
Regular expenses such as housing, utilities, groceries, transport and insurance reduce the amount of income available for loan repayments.

Existing debts
Credit cards, personal loans, car loans, student loans and other financial commitments can reduce your borrowing capacity because they require ongoing repayments.

Interest rates
Higher interest rates generally increase loan repayments, which can reduce the amount you may be able to borrow.

Credit limits
Some lenders consider available credit limits as well as outstanding balances when assessing your financial commitments. Reducing unused credit limits may improve borrowing capacity in some situations.

Number of dependants
Having dependants can increase estimated household expenses, leaving less income available to service a new loan.

Employment and income stability
Lenders may consider how stable and reliable your income is. Requirements can vary for permanent employees, contractors, casual workers and self-employed borrowers.

Loan term
A longer loan term can lower the repayment required for a given loan amount, although it may increase the total interest paid over the life of the loan.

Deposit
For property purchases, a larger deposit can reduce the amount you need to borrow and may improve your overall lending position.

Your actual borrowing capacity will depend on the lender, loan type, country and individual lending criteria. Use the calculator as a starting point rather than a guarantee of how much you can borrow.

How to Increase Your Borrowing Power

If your estimated borrowing amount is lower than you expected, there are several steps that may help improve your financial position before applying for a loan.

Pay down existing debts
Car loans, personal loans, credit cards and other debt repayments reduce the income available for a new loan. Paying down or clearing debts may increase your borrowing capacity.

Reduce unused credit limits
Some lenders consider your available credit limits when assessing your financial commitments. Reducing or closing credit accounts you no longer need may improve your borrowing position.

Increase your deposit
For a property purchase, a larger deposit reduces the amount you need to borrow. It may also improve your loan options and reduce costs associated with higher loan-to-value ratios.

Reduce regular expenses
Lower ongoing expenses can leave more of your income available for loan repayments. Reviewing subscriptions, recurring bills and discretionary spending may help strengthen your financial position.

Increase your income
A higher or more stable income may increase borrowing capacity. Depending on the lender, additional employment income, rental income or other reliable income sources may be considered.

Apply with a co-borrower
Applying jointly may increase borrowing power when a co-borrower adds sufficient income relative to their expenses and existing debts. Keep in mind that both borrowers are generally responsible for the loan.

Consider the loan term
A longer loan term can reduce the repayment required for a given loan amount, which may affect borrowing capacity. However, a longer term can also mean paying more interest over the life of the loan.

Compare different scenarios
Use the Borrowing Power Calculator to test how changes to your income, expenses, debts, deposit, interest rate and loan term could affect your estimated borrowing amount.

Actual borrowing capacity varies by lender, loan type and location, so improving one factor does not guarantee that you will qualify for a larger loan.

Frequently asked questions

1. What is borrowing power?
Borrowing power is an estimate of how much money you may be able to borrow from a lender based on factors such as your income, expenses, existing debts, interest rate and loan term.

2. How is borrowing power calculated?
Borrowing power is generally estimated by looking at your income and subtracting regular expenses and existing debt commitments. The remaining repayment capacity is then assessed against factors such as the interest rate and loan term.

3. What can reduce my borrowing power?
High living expenses, existing loans, credit card commitments, higher interest rates and other regular financial obligations can reduce the amount you may be able to borrow.

4. How can I increase my borrowing power?
You may be able to improve your borrowing position by paying down existing debts, reducing unnecessary credit limits, lowering regular expenses, increasing your deposit or increasing your income. The impact will depend on the lender and your circumstances.

5. Does having a credit card affect borrowing power?
It can. Some lenders consider your credit card limit or required repayments when assessing your financial commitments, even when you do not currently owe the full available amount.

6. Does a larger deposit increase borrowing power?
A larger deposit does not necessarily increase the maximum amount a lender will approve, but it reduces the amount you need to borrow and can improve your overall loan position. For property purchases, it may also improve your loan-to-value ratio.

7. Why is my borrowing power different between lenders?
Lenders use different assessment methods, expense assumptions, interest-rate buffers and eligibility requirements. This means the same borrower can receive different borrowing estimates from different lenders.

8. Is the Borrowing Power Calculator accurate?
The calculator provides an indicative estimate based on the information you enter. It should be used for planning and comparing scenarios rather than as a guaranteed loan amount. Your actual borrowing capacity will depend on the lender's assessment and lending criteria.