This calculator gives an estimate of how much you may be able to borrow from a lender, based on your income and financial commitments. Borrowing power is calculated on a simplified serviceability model that can differ from lender to lender — it is a guide only. You'll only know your actual borrowing capacity once you apply for a loan.
Assumptions
No upfront or ongoing loan fees are taken into account.
The interest rate is assumed fixed for the entire loan term.
A buffer of 3% is added to the entered interest rate (or a floor of 5.75%, whichever is greater) to estimate maximum borrowing capacity, in line with common lender serviceability practice. Displayed repayment amounts use the actual entered rate, without the buffer.
The greater of your entered living expenses, or a default minimum living expense estimate based on your household size, is used in the calculation.
Credit card commitments are assessed at 3.8% of the total credit limit per month, a common lender serviceability assumption.
Fortnightly and weekly repayments are the monthly repayment converted to that frequency.
Results are rounded down to the nearest $1,000.
The information provided by this calculator is intended to provide illustrative examples based on stated assumptions and your inputs. Calculations are estimates only — please consult a finance professional about your specific circumstances.