Borrowing Power Calculator Australia

Get a rough estimate of how much you may be able to borrow.

Monthly take-home (net) income$Monthly living expenses$Monthly existing debt repayments$Current interest rate%Assessment rate buffer%Loan termyears

—estimated maximum borrowing power

—monthly surplus used for the calc

—assessed rate (rate + buffer)

This is a rough indicative estimate only, not a pre-approval. Real lender serviceability assessments are far more complex — they use standardised HEM (Household Expenditure Measure) benchmarks instead of your actual expenses, count credit card and other credit limits at ~3% of the limit regardless of balance, factor in dependants, other assets and liabilities, and apply their own credit policy. Always get a formal assessment from a lender or broker before relying on a borrowing power figure.

✨ What do you want to try next?

You've finished this tool — here are a few you might find useful.

Mortgage Offset Calculator AustraliaSee how much interest an offset account saves.Try it →Mortgage Repayment Calculator AustraliaWork out your home loan repayment amount.Try it →Refinance Savings Calculator AustraliaSee how much refinancing could save you.Try it →Surprise MeWe'll pick something random.Surprise Me →

Explore 100+ free toolsPDF, Image, Text, Convert, Calculate and more — all free.View all tools →

About the Borrowing Power Calculator

This gives a rough, indicative estimate of how much you might be able to borrow for a home loan, based on your income, living expenses and existing debts. It's a starting point for budgeting — not a substitute for a formal serviceability assessment from a lender or mortgage broker.

How it works

It works out your monthly surplus (income minus expenses minus existing debt repayments), then applies a standard loan amortisation formula in reverse: given that surplus as the maximum affordable repayment, at the assessed interest rate (your entered rate plus a serviceability buffer, similar to the APRA-guided buffer lenders apply) over your loan term, it solves for the maximum loan amount that surplus could service.

Assumptions and behaviour

Applies a serviceability buffer (default 3.0%) on top of your entered rate, similar to the buffer APRA guidance expects lenders to use when assessing your ability to repay if rates rise.
Surplus is floored at $0 — if expenses and debts exceed income, estimated borrowing power is $0.
Assumes the full surplus could go toward a new home loan repayment, which is rarely realistic since lenders also factor in a living-expense buffer of their own.

Limitations

This is a rough indicative estimate only — it is not a pre-approval and does not reflect any specific lender's policy.
Real lender serviceability calculations are far more complex: they typically use standardised HEM (Household Expenditure Measure) benchmarks rather than your actual expenses, count credit card and other credit limits at roughly 3% of the limit regardless of balance, and factor in dependants, other assets, liabilities, rental income, and their own risk appetite.
Doesn't account for Lenders Mortgage Insurance, deposit size, or property type restrictions.
Always get a formal assessment from a lender or mortgage broker before making decisions based on a borrowing power figure.

Privacy

The calculation runs entirely in your browser. Nothing is uploaded or stored.

Frequently asked questions

Is this borrowing power calculator free?

Yes — free, no sign-up, no limits, runs in your browser.

Is this the same figure a bank will give me?

No. This is a rough indicative estimate. Banks use standardised expense benchmarks (HEM), count credit limits at a set percentage, and apply their own credit policy — your real borrowing power could be higher or lower than this estimate.

Why does the calculator add a buffer to the interest rate?

Lenders assess your ability to repay at a higher 'assessment rate' than the actual rate you'd pay, so you can still afford repayments if interest rates rise. This calculator applies the same idea with an adjustable buffer, defaulting to 3.0%.

What counts as an existing debt repayment?

Ongoing monthly repayments on things like car loans, personal loans, and minimum credit card payments. The more you include here, the lower your monthly surplus and estimated borrowing power.

Is my data uploaded?

No. Everything runs locally in your browser; nothing is sent or stored.

Does the result include stamp duty or other buying costs?

No — this is a borrowing power estimate only, for the loan amount a lender might extend. It doesn't factor in stamp duty, conveyancing or other purchase costs; use the Stamp Duty Calculator alongside this to see what you'd need on top of your deposit and loan.

Written by Lakshay Kumar(TechLakshay)

A QA Automation Engineer by trade, Lakshay's real passion is untangling complex problems into simple, working solutions — which is exactly why FreeMyTask exists. On Instagram, he channels that same instinct into helping 26,000+ content creators with SEO education, motivation, and hands-on query solving.

Last updated: August 22, 2026