Borrowing Capacity Calculator
Estimate how much your client can borrow.
The borrowing capacity calculator estimates the maximum loan amount using the APRA serviceability buffer (currently 3%) to align with how lenders actually assess applications.
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Go to Quick Calcs
In the sidebar, click 'Quick Calcs' under the Tools section. Select 'Borrowing Capacity' from the calculator list.
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Enter income details
Enter the gross annual income: base salary, overtime/bonuses (if regular), rental income from investment properties, and any other income. The calculator shades non-base income at 80% to match lender assessment.
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Enter expenses and debts
Enter monthly living expenses (or leave blank to use the HEM benchmark), existing loan repayments (car loans, personal loans, HECS), and total credit card limits. Credit cards are assessed at 3% of the limit per month — even if the balance is zero.
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Set loan parameters
Choose the loan term (default 30 years), interest rate (current market rate or a specific rate), and the number of dependants. The calculator adds the APRA 3% buffer on top of the entered rate.
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View results
The calculator shows: maximum borrowing amount, estimated monthly repayment at the actual rate, repayment at the assessment rate, and a risk band (comfortable, moderate, tight) indicating how close to the limit the borrowing is.
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Adjust and compare
Change any input and the results update instantly. Show clients how reducing a credit card limit by $10,000 increases borrowing power by ~$30,000, or how adding a $20,000 rental income changes the picture.
Ready to try this yourself? Start your 60-day free trial