How Much can I Borrow?

How it Works

How much can you borrow based on your salary and existing financial commitments? This calculator will show you how much based on your income and personal circumstances.

Borrowing Power Calculator Information

The Borrowing Power Calculator calculates the maximum amount of loan available based on the income and expenses entered. Default values provided assist in giving an estimate of the expenses and other factors which may determine the amount available for a loan.

Calculator Assumptions

Expense Details and Default Values

Number of dependants Single Joint
0 $15,624 $22,715
1 $21,459 $28,235
2 $26,980 $33,756
3 $32,500 $39,277
4 $38,021 $44,736

  1. Default core expense annual allowance - borrower assumed to have core level of annual expense, depending on whether single or joint and the number of dependants, currently as below:
  2. Default extra core expenses for more than 4 dependants - currently set at $2,880.
  3. Maximum percentage of income available - percentage of income available for paying expenses and servicing proposed borrowing, default currently set at 100%.
  4. Minimum Credit Card Repayment - percentage used to calculate minimum repayment on credit card, default currently set at 3%

Length of Month

All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days’ interest dependent on the number of days in the particular month.

Number of Weeks & Fortnights in a Year

One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

Rounding of Amount of Each Repayment

In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts.