Calculators
Borrowing power calculator
A quick estimate of how much you could borrow for a home, using the same buffer lenders apply when they assess a loan.
Before tax
Optional, before tax
Everything except rent and debts
Car, personal and student loans
Total limits, even if unused
Your inputs stay in this browser. They are not sent to RBADay or stored.
You may be able to borrow about
$503,000
Repayments of about $3,053 a month at 6.10%
- Take-home pay
- $7,590 / mth
- Tested at
- 9.10%
A rough guide only, not an offer of credit. Lenders test repayments at least 3 percentage points above the loan rate, use their own expense benchmarks and assume about 3% of card limits is repaid each month. Take-home pay uses 2026–27 resident tax rates, the low income tax offset and a 2% Medicare levy.
How the estimate works
The calculator works out take-home pay after income tax and the Medicare levy, subtracts your expenses and commitments, then finds the largest loan whose repayments fit that surplus at your rate plus 3 percentage points. Each lender’s own calculation will differ.
Budget for buying costs as well: use the stamp duty calculator, and check how a rate rise would affect the loan with the stress test.
Common questions
How do lenders work out how much I can borrow?
Lenders estimate your take-home pay, subtract living expenses (the higher of what you declare and a benchmark), existing debt repayments and an allowance for credit card limits, then check you could still afford repayments if your rate were at least 3 percentage points higher.
Why do RBA rate rises reduce borrowing power?
A higher cash rate usually means a higher loan rate, and lenders add the buffer on top. The same income then supports a smaller loan. A 0.25 point rise typically cuts borrowing capacity by roughly 2 to 3%.
How can I increase my borrowing power?
Reducing credit card limits, paying off personal loans, cutting regular expenses and adding a second income all increase the surplus lenders assess. A larger deposit does not change borrowing power but reduces how much you need.