Borrowing Capacity Calculator
Estimate how much a lender may let you borrow — using the same kind of buffers and benchmarks Australian banks apply. It takes about two minutes, and you’ll see your results instantly.
How is borrowing capacity calculated in Australia?
Lenders start with your after-tax income, subtract your living expenses and existing commitments, and work out what repayments you could afford — not at today’s rate, but at your rate plus a serviceability buffer of around 3% mandated by APRA. They also apply minimum living-expense benchmarks (HEM), count only around 80% of rental income, and assume your credit cards are fully drawn.
That’s why two banks can give the same person very different answers — and why the difference between the most and least generous lender can be six figures. This calculator mirrors the common approach so you get a realistic starting point.
What affects your borrowing power most?
- Income and how it’s earned — casual, contract and self-employed income is often shaded or needs longer history.
- Credit card limits — even unused cards reduce capacity; lowering limits is the quickest win.
- HECS/HELP debt — repayments come out of your pay and directly reduce serviceable income.
- Dependants and living expenses — benchmarks scale with household size.
Ready to see the full picture? Try the Savings Target Calculator to work out your deposit, or the Stamp Duty Calculator for your purchase costs.
Important information. These calculators provide estimates for general information and educational purposes only. Results are based on the information and assumptions entered and may not reflect your actual financial position or eligibility. They do not constitute financial, credit, taxation, investment or legal advice. Lending criteria, interest rates, taxes, government charges, stamp duty rates and concessions can change. You should obtain advice appropriate to your circumstances from appropriately qualified professionals.
Borrowing capacity is indicative only. Different lenders use different assessment rates, servicing calculations, expense benchmarks and credit policies. Speak with a mortgage broker or lender to determine your actual borrowing capacity.