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How much can I borrow? Borrowing power calculator.

Your borrowing power is the most a lender is likely to lend you, given what you earn, what you spend and what you already owe. Answer a few questions about your household and this calculator gives you a figure, the repayment that goes with it, and the limit that set it.

It follows the shape of a lender’s serviceability test: your income after tax, less living costs and commitments, tested at a higher rate than the one you would actually pay. That makes it a realistic starting point, not a quote.

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How this calculator works.

  1. Each applicant’s gross income is taxed separately using 2026–27 resident tax rates, the low income offset and the Medicare levy. The two are added together and divided by 12 to give net monthly income.
  2. Your monthly living expenses are compared with an indicative minimum for your household, and the higher of the two is used. That minimum is our own rough estimate, not the licensed Household Expenditure Measure (HEM) that lenders pay to use.
  3. Commitments come off next: credit cards at 3.8% of the total limit each month (whatever the balance), other loan repayments, and any HECS/HELP repayment.
  4. What is left is your monthly surplus. It is tested at your interest rate plus a 3% serviceability buffer, and the loan that surplus could repay over your chosen term is your borrowing power.
  5. Last, the result is capped at 6 times your gross household income (a debt-to-income limit). The calculator tells you whether your income and expenses or that cap set the figure.

What it assumes

  • The interest rate starts at 6.44% (the RBA average new variable rate for Jul 2026, adjusted for the 30 Sep rise). Change it to the rate you expect to pay.
  • Serviceability buffer: 3% added to your rate for the test.
  • Credit cards count at 3.8% of the total limit each month.
  • Debt-to-income cap: 6 times gross household income.
  • Living-expense floor: $2,300 a month for one adult or $3,400 for a couple, plus $550 for each dependant (up to four).
  • Tax: 2026–27 resident rates (0% to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above), the 2% Medicare levy and the low income tax offset (up to $700).
  • HELP/HECS repayments follow the 2026–27 schedule: nothing below $69,528, then 15% and 17% marginal bands, and a flat 10% of income above $186,050.
  • Assumptions last reviewed 25 September 2026.

Questions people ask.

How much can I borrow on a $90,000 salary?

With the calculator’s starting answers (one applicant on $90,000, no dependants, $2,500 a month in expenses, $6,000 of credit card limits and a 6.44% rate over 30 years) it estimates about $378,013. Change any answer and the figure moves: a second income, lower expenses and fewer cards lift it, while a higher rate, dependants or a HECS/HELP debt bring it down.

What is a serviceability buffer?

Lenders do not only check that you can afford today’s rate. They test your repayments at a higher assessment rate, your rate plus a buffer, in case rates rise. This calculator uses a 3% buffer, in line with the buffer APRA-regulated lenders have applied to home loans in recent years. Your own lender’s buffer may differ.

Why is my borrowing power lower than I expected?

The usual reasons are credit cards (each limit counts at 3.8% a month even if you never use it), living expenses that are higher than they feel, a HECS/HELP repayment, dependants, and the buffer on the rate. Very high borrowing against a modest income can also hit the 6 times income cap.

Is my borrowing power the same as what a lender will approve?

No. This is an estimate. A lender uses its own policies and expense benchmarks, checks your income and living costs against documents, looks at your credit history and values the property. Treat the figure as a starting point, then talk to a broker who can compare lenders for your situation.

How can I increase my borrowing power?

Generally, reducing or closing unused credit cards, paying down personal and car loans, adding a second income, choosing a longer term and lowering your living costs all help. The calculator lets you change each of these and see the effect straight away.

Does using the calculator affect my credit score?

No. Nothing is sent to a lender or a credit bureau. If you are signed in, the answers you change are saved to your Siare fact find so you do not have to enter them again; signed out, nothing is saved.

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