Borrowing Power Calculator

How much can you afford to borrow in a loan? Your borrowing power is determined by many factors, including your income and expenses. The amount that you can afford to borrow will also be affected by the interest rate and loan term of any loan. A higher interest rate will decrease your borrowing power, while a lower interest rate will increase the amount you can afford to borrow.

The borrowing power calculator on this page will help you determine how much you can comfortably afford to borrow at a given interest rate and loan term. To use the borrowing power calculator, enter your personal income and expense details. Select whether the income stated is from a single or joint income, and your number of dependents. Next, enter the amount of your net salary, and the frequency with which you are paid (monthly or fortnightly). Add in any additional income you receive from other sources.

Next, enter your annual expenses (or use the default provided). Enter the amount of your monthly car and credit card repayments, as well as information about any additional payment obligations. Finally, enter the loan details. What interest rate and loan term have you been offered?

Based on the information provided, the calculator will reveal the amount of money you can afford to borrow, and the monthly payment cost for a loan at that amount, interest rate and term.

Money-Saving Tips

  • By borrowing less than you can afford, you will be able to make bigger repayments on your loan obligations and reduce the amount of interest and total monthly payments paid.
  • Try increasing the frequency of your payments by remitting the installments on a weekly or fortnightly basis rather than once per month. Because interest is assessed daily based on the balance of the principal, paying more frequently will decrease the total amount of interest paid over time.
Borrowing Power
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Note: The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. It is advised that you consult your financial adviser before taking out a loan.

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For residents of Australia only

If you are employed and have debts greater than $10,000 please contact us on 1300 361 204 or fill in this form. We have live Debt Consultants available to help you now.


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