The Finance Algorithm
§ Tool · tier 1 · independent

Borrowing Power Calculator.

Calculate how much you can borrow with AI insights on lender policies

CalculatorFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$100k

Before tax income

$
$0

Leave the slider at $0 if applying solo

$
$3k

Food, utilities, transport — lenders use HEM if too low

$
$0

Car loans, personal loans, credit card minimums

0

Children or others you financially support

%
6.49%

APRA adds a 3% buffer on top when assessing — so we test you at 9.49%.

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Your borrowing power determines the maximum loan amount lenders will approve. It's based on your income, expenses, and existing debts. Our calculator uses APRA serviceability standards and provides AI insights on how different lenders might assess your application.

§ Worked examples

Real-world scenarios

Single First Home Buyer

Taylor earns $85,000, has $2,500 monthly expenses, no dependants, and a $5,000 credit card limit.

Inputs

grossIncome:85,000partnerIncome:0monthlyExpenses:2,500existingDebts:0dependants:0interestRate:6.5

Estimated borrowing power: ~$420,000. Closing the unused credit card could add ~$25,000 to this figure.

Couple with Dependants

Chris and Sam have combined income of $180,000, $4,500 expenses, 2 kids, and a $500/month car loan.

Inputs

grossIncome:100,000partnerIncome:80,000monthlyExpenses:4,500existingDebts:500dependants:2interestRate:6.5

Estimated borrowing power: ~$750,000. Each dependant reduces borrowing by roughly $60,000-$80,000 depending on the lender.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Serviceability
Your ability to make loan repayments. Lenders test this at your rate + 3% buffer to ensure you can handle rate rises.
HEM (Household Expenditure Measure)
A benchmark lenders use for minimum living expenses if your declared expenses are too low. Based on ABS data.
Buffer Rate
An additional 3% added to the loan rate when assessing if you can afford repayments. Required by APRA.
Pre-approval
A conditional approval for a loan amount, valid for 3-6 months. Subject to final verification before settlement.