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Self-employed borrowing power calculator.

Lenders assess a business owner from taxable income, which is what is left after the business has claimed every deduction. Some of those deductions are not real cash costs, or will not come up again, so lenders may add part of them back. Enter your taxable income and the add-backs you know about, and the calculator shows your borrowing power with all of them, half of them and none.

Lenders differ on which add-backs they accept and by how much, which is why you see a range and not a single answer.

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How this calculator works.

  1. Start with your taxable business income, usually the average of your last two years’ tax returns.
  2. Add back the items a lender may accept: depreciation, interest on business debt, super paid above the compulsory Superannuation Guarantee, and one-off expenses. The calculator adds a share of them to your income and runs the result three times: all of them, half of them and none.
  3. The adjusted income goes through the same assessment as our borrowing power calculator: tax, living expenses against an indicative minimum, commitments, then a test at your rate plus a buffer.
  4. The result is capped at 6 times income. A partner’s income is added if you are applying together.

What it assumes

  • The starting scenario is $90,000 of taxable income with $6,000 of depreciation, $2,000 of interest, $4,000 of extra super and $3,000 of one-off expenses.
  • Serviceability buffer: 3% added to your rate. Term: 30 years. No HECS/HELP debt is assumed.
  • The adjusted income is taxed as if it were a salary, which is a simplification.
  • 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).
  • Assumptions last reviewed 25 September 2026.

Questions people ask.

How do lenders assess self-employed income?

Most start from your tax returns and notices of assessment, usually for the last two years, and use your taxable income, sometimes averaged and sometimes the lower of the two years. They may then add back certain items. Requirements differ between lenders, and some accept less documentation under conditions.

What are add-backs?

Add-backs are deductions the business has claimed that a lender treats as not reducing your real income, such as depreciation, which costs no cash, or a one-off expense that will not recur. Adding them back increases the income the lender assesses you on.

Which add-backs do lenders accept?

It varies. Depreciation is widely accepted, and others are accepted by some lenders and not others, or only in part. That is why the calculator shows the result with all, half and none of them. With the starting numbers that is $479,629, $428,821 and $378,013.

Why is my borrowing power lower than an employee on the same income?

Lenders look at taxable income after deductions, not your turnover, and self-employed income can be less predictable. So a business owner can earn well and still show a lower assessed income than an employee on a comparable salary.

What documents will I need?

Typically your personal and business tax returns and notices of assessment, recent business activity statements, identification and details of your debts. Exactly what is needed depends on the lender, so ask before you apply.

Does it matter if I am a sole trader or a company director?

Yes. A sole trader’s income is the business’s net profit. A director may be assessed on a salary plus a share of the company’s profit, and the lender will look at the company’s financials too. A broker can explain how each lender treats your structure.

More calculators.

Self-Employed Borrowing Power Calculator | Siare