Disclaimer: This calculator provides estimates only and should not be considered financial or tax advice. Always consult with a qualified tax professional or accountant before making investment decisions. This tool does not constitute advice from the Australian Taxation Office. Evercend Pty Limited does not hold an Australian Credit Licence, and does not provide any credit or credit related services.
Borrowing power inputs and results
Before tax.
Rent, dividends, etc. after tax.
We've estimated this; adjust to your real spending.
Car, personal, HECS, other mortgages.
Lenders assess the limit, not the balance.
Enter your income to begin
Add your gross income on the left and your estimated borrowing power appears here instantly.
What is borrowing power?
Borrowing power, sometimes called borrowing capacity, is an estimate of the amount a lender may be willing to lend you for a home loan.
It is shaped by how much you earn, your regular living expenses, any existing debts, the size of your deposit, and the interest rate and term of the loan. Each lender applies its own criteria, so two lenders can reach different figures for the same borrower. This calculator gives an indicative estimate to work from before you speak to a lender or broker. It is a model, not a loan approval or an offer.
How to use this calculator
Enter your income
Use your gross annual income before tax, including income you can evidence.
Add your expenses and debts
Estimate your monthly living costs and enter the total limit of any credit cards.
Set the loan terms
Enter a deposit amount, an interest rate and a loan term to test different scenarios.
Read the estimate
The result shows an indicative borrowing range, not a guaranteed loan amount.
How this calculator works
The calculator estimates the income you have left after your living expenses and existing debt commitments, then works out the loan size those funds could service over the term you choose. To reflect how lenders assess applications, repayments are tested at an interest rate higher than the rate you enter.
Assumptions used
Repayments are assessed at your entered interest rate plus a serviceability buffer of 3 percentage points, in line with APRA guidance. Living expenses are taken from the figure you enter. When assessing a loan, lenders are required to consider your living expenses and often compare your figure against a benchmark such as the Household Expenditure Measure, using the higher of the two. Existing credit card limits are treated as an ongoing commitment based on the full limit, not the balance you currently owe. The estimate assumes a principal and interest loan and a constant interest rate for the life of the loan. It does not include lender fees, government charges, or lenders mortgage insurance, and it does not apply a lender's debt-to-income limit, a credit history check, an employment assessment, or an allowance for dependants.
Worked example
A single applicant earns $120,000 a year before tax, with monthly living expenses of $3,200 and a credit card limit of $15,000. They have a $90,000 deposit and are looking at a 30 year loan at 6.0%.
Assessed at 6.0% plus the 3 percentage point buffer, which is 9.0%, the calculator estimates a borrowing power of about $426,000. Adding the deposit gives an indicative maximum property price of roughly $516,000. At the actual 6.0% rate, repayments on the loan would be about $2,560 a month.
Changing any single input moves the result. A larger deposit, lower expenses, or a smaller credit card limit generally increases the estimate, while a higher assessment rate reduces it.
What affects your borrowing power
Income
Higher stable income generally supports a larger loan. Lenders look at how reliable and ongoing the income is, not only the amount.
Living expenses
Regular costs such as rent, utilities, groceries and transport reduce the income available for repayments. Lenders are required to consider your living expenses and often compare them against a benchmark.
Existing debts and limits
Personal loans, car loans and credit cards reduce capacity. Lenders generally assess the full limit of a credit card as an ongoing commitment, even when the balance is nil.
Deposit and LVR
A larger deposit lowers the loan-to-value ratio. A deposit below 20 percent usually means lenders mortgage insurance applies, which adds to the cost. Some government schemes can allow eligible first home buyers to borrow with a smaller deposit without paying it.
Interest rate and term
A higher assessment rate lowers borrowing power. A longer term lowers the monthly repayment but increases the total interest paid over the loan.
Debt-to-income limits
From February 2026, APRA limits how much of a lender's new mortgage lending can go to borrowers with a debt-to-income ratio of six times or more. This is a limit on each lender's overall lending, not a ban on individual loans, and this calculator does not apply it.
Credit history
A person's repayment history and credit report form part of a lender's assessment. This calculator does not factor in credit history.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| Serviceability buffer | Entered rate plus 3.0 percentage points | APRA, macroprudential settings |
| Debt-to-income limit (lender level) | 20% of new lending capped at a DTI of 6 times or more, from February 2026 | APRA, debt-to-income limits |
| Living expense benchmark | Household Expenditure Measure, higher of declared or benchmark | ASIC MoneySmart |
| Deposit threshold for LMI | Below 20% deposit, LVR above 80% | ASIC MoneySmart |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
There is no single figure, because lenders weigh income, expenses, existing debts, deposit and the loan terms together, and each lender applies its own criteria. This calculator gives an indicative estimate based on the figures you enter, which can be a useful starting point before speaking to a lender or broker.
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LVR Calculator
Estimate your loan-to-value ratio and LMI
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Duty and concessions by state
Property Buying Cost Calculator
Upfront costs of buying a home
Refinance Savings Calculator
Break-even and net saving on a switch
How the 50% CGT Discount Works
Guide
Sources
- •APRA, macroprudential policy settings, serviceability buffer
- •APRA, debt-to-income limits as a macroprudential policy tool
- •ASIC MoneySmart, buying a house and saving a deposit
- •Reserve Bank of Australia, lenders interest rates statistics
Content reviewed and figures checked against the sources above on 10 August 2026.