Borrowing power calculator

How to use this calculator

Enter your gross annual income, monthly living expenses, any existing loan repayments, and your total credit card limits. The calculator instantly shows your estimated borrowing scenario. This simplified estimate does not predict a lender approval.

Add your partner's income if you are applying jointly. Toggle between loan terms to see how a shorter term affects your limit.

How your borrowing power is calculated

Australian lenders assess borrowing power by calculating your net monthly income, deducting all committed monthly expenses and debt obligations, and determining what repayment you can sustainably afford. They then calculate the maximum loan where repayments fit within that capacity — but at a stressed rate, not your actual rate.

The APRA serviceability buffer

APRA APS 220 requires authorised deposit-taking institutions to assess mortgage serviceability with a buffer of at least 3 percentage points above the loan rate, unless APRA determines otherwise. At an illustrative 6.39% loan rate, that minimum-buffer scenario uses 9.39%; a lender may use a higher assessment rate or additional tests. This is why many borrowers find their approved loan amount significantly lower than expected.

Why credit card limits matter more than you think

Credit card limits and outstanding balances can affect the assessed commitment. Lender methods vary. Calcy applies 3.8% of entered limits as an illustrative monthly commitment to the limit you enter; this is not an APRA-mandated percentage or a guaranteed dollar reduction in borrowing power.

How living expenses are assessed

Calcy uses the greater of entered expenses and an illustrative monthly floor: $2,000, plus $800 when partner income is included and $400 per dependant. These are Calcy assumptions, not licensed Household Expenditure Measure (HEM) data. The income estimate retains 70% of gross income after including 80% of overtime and rental income. It does not calculate actual tax or a lender's full assessment.

How to increase your borrowing power

• Close or reduce unused credit cards. Unused limits can affect a lender's assessment; ask how yours are treated before changing facilities.
• Pay down existing debts before applying. Each $500/month in existing loan repayments reduces your assessed repayment capacity.
• Include consistent overtime or bonus income. Acceptance and any discount depend on the lender, employment history and supporting evidence.
• Apply jointly. Two incomes assessed together significantly increases capacity. Both applicants' liabilities and expenses are also assessed; a second income does not imply a fixed increase in the loan limit.
• Reduce your living expenses. Where lenders apply the HEM floor, this has no effect, but if your declared expenses are above HEM, reducing them increases your assessed surplus.
• Consider a longer loan term. A 30-year term has lower monthly repayments than a 25-year term for the same loan amount, which can increase the maximum loan you qualify for.

After you know your limit

Once you know roughly how much you can borrow, work out the upfront costs and monthly repayments so you can confidently set a property budget.

• Stamp duty calculator →

  Estimate the stamp duty bill for your state — a major upfront cost that comes out of your deposit, not your loan.

• Mortgage repayment calculator →

  Plug your maximum loan into a repayment schedule to see if monthly numbers feel comfortable in real life.

• LMI calculator →

  Borrowing more than 80% of the property value usually triggers Lenders Mortgage Insurance — estimate it here.

• Extra repayments calculator →

  See how small extra repayments can shave years and tens of thousands of dollars off your future loan.

How much can I borrow on my salary?

Borrowing capacity depends on income, living costs, debts, dependants, loan terms and lender policy. Enter a scenario below; the result is an estimate using a 3 percentage-point assessment buffer, not an approval.

How to estimate your home loan borrowing power

1. Enter your income

   Add gross annual income for you and any joint applicant.

2. Enter monthly expenses

   Include living costs, existing repayments and credit card limits.

3. Set the interest rate and term

   Use your lender's advertised rate and intended loan term.

4. Review your borrowing power

   See the maximum loan size after the APRA 3% serviceability buffer.

Frequently asked questions

How much can I borrow on a $100,000 salary in Australia?

A $100,000 salary alone cannot determine a loan limit. Income treatment, expenses, debts, dependants, rate, term and lender policy all matter. Use this calculator for an illustrative scenario and confirm eligibility with a lender.

What is the APRA serviceability buffer?

APRA APS 220 requires authorised deposit-taking institutions to apply a mortgage serviceability buffer of at least 3 percentage points. For an assumed 5.50% loan rate, adding that buffer gives 8.50%. The calculator is a scenario estimate and does not reproduce a lender's complete assessment of your ability to repay a mortgage.

Do both incomes count when applying for a joint home loan?

Yes. Most lenders include both applicants' incomes in a joint application. However, they will also assess both applicants' liabilities and living expenses. This calculator allows you to enter a second income.

How does a credit card affect my borrowing power?

Credit card limits and other commitments can affect borrowing power even if you pay the balance in full. Assessment methods vary by lender. Calcy assumes a monthly commitment of 3.8% of entered card limits. This is a modelling input, not an APRA-mandated monthly percentage or a guaranteed reduction in your loan limit.

Data sources

APRA Serviceability Buffer — APS 220 — reviewed 14 Oct 2026

RBA Cash Rate — Reserve Bank of Australia — 30 Sep 2026 (checked 14 Oct 2026)