How this borrowing power calculator works
Lenders work out how much income you have left each month after tax, living costs and existing debts, then check that surplus could cover repayments at an assessment rate at least 3 percentage points above the rate you would actually pay. This calculator follows the same steps.
It estimates take-home pay using 2026-27 resident tax rates plus the Medicare levy, uses the higher of your declared living expenses and a typical household benchmark, counts part of any rental income, and treats roughly 3.8% of your credit card limits as a monthly cost, as most lenders do.
How much can I borrow on my salary?
Rough estimates at a 6.25% rate over 30 years, with benchmark living costs and no other debts:
| Household | Estimated borrowing power |
|---|---|
| Single, $80,000 salary | $375,000 |
| Single, $120,000 salary | $655,000 |
| Couple, $100,000 + $80,000 | $1,030,000 |
| Couple, $150,000 + $100,000 | $1,500,000 |
| Couple, $120,000 + $90,000, two children | $1,100,000 |
What reduces how much you can borrow
- Credit card limits, even if you pay the balance off each month
- Car loans, personal loans, buy now pay later and HECS-HELP debt
- Dependants, which raise the living cost benchmark
- Variable income such as overtime, bonuses or commission, which lenders often discount
- Higher interest rates, because the assessment rate rises with them
Frequently asked questions
No. It is an estimate. Each lender uses its own expense benchmarks, income rules and assessment rate, so results can differ by tens of thousands of dollars between lenders. A broker can check your figures against real lender policies.
Lenders test your repayments at a rate at least 3 percentage points higher than the actual rate, and they count credit card limits rather than balances. Closing unused cards and paying down small debts is often the quickest way to borrow more.
Your deposit doesn't change the loan your income can support, but it does change the price you can buy at, whether you pay LMI and which lenders are available.