The Finance Algorithm

Affordability Calculator

Find out how much personal loan you can comfortably afford based on your income and expenses

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$6k

Your total monthly income after tax

$
$4k

Your regular monthly expenses (rent, bills, food, etc.)

$
$200

Monthly payments on existing loans and credit cards

%

All your debt repayments, including the new loan, as a share of take-home pay - a limit you choose

%
9.5%

Typical personal loan rates range from 7% to 15%

5y

How long you'd like to repay the loan

The button asks our AI to explain these figures in words.

Personal loan affordability

Largest loan

$76,184

over 5yr @ 9.5%, set by your limit

Repayment

$1,600

a month on that loan

All repayments

30.0%

of take-home pay, up from 3.3%

Left each month

$700

after expenses and all repayments

What each limit lets you borrow

Your own limit of 30% of take-home pay on all repayments, and what your cash flow leaves room for. The lower of the two sets the estimate.

  • Lower ceiling
  • Other ceiling
$76,184Your limit (30%)of take-home pay$109,514Cash flowincome less outgoings

Where your income goes at that loan

Living expenses + existing debts + new loan repayment + what's left = take-home pay.

$6,000take-home pay
Living expenses58.3%
Existing debts3.3%
New loan repayment26.7%
Left over11.7%

Same monthly repayment, different terms

A longer term supports a larger loan for the same repayment, but costs more in total interest.

$18,2471yr$49,9493yr$76,1845yr$97,8957yr$123,65010yr

Same monthly repayment, different rates

The loan the same repayment supports at rates up to 2 points either side of yours.

$79,8487.5%$77,9868.5%$76,1849.5%$74,44010.5%$72,75211.5%
A lender makes its own assessment. Lenders must ask about your income and expenses, and they can't lend if they think you couldn't make the repayments, or could only make them with substantial hardship. They don't use your limit, so the amount they'd approve can differ from this estimate.

How it works

Not sure how much personal loan you can afford? This calculator analyzes your financial situation to give you a realistic estimate of what you can comfortably borrow without overextending your budget.

  1. 1Enter your total monthly income after tax
  2. 2Add your regular monthly expenses
  3. 3Include any existing loan or credit card repayments
  4. 4Set the expected interest rate and preferred term
  5. 5See how much you could borrow, updated as you type

The figures today

As of 7 November 2026, the lowest personal loan rate is 5.80%, from Plenti Personal Loan, while the typical best across 68 institutions is 7.96%.

Personal loan rates

Worked examples

Young Professional

Emma takes home $6,000 a month, spends $3,500 and pays $200 on a credit card. She caps all debt repayments at 30% of her pay.

Monthly income (after tax)
$6,000
Monthly expenses
$3,500
Existing debt repayments
$200
Your cap on debt repayments (% of take-home pay)
30%
Expected interest rate
9.5%
Preferred loan term (years)
5

Her 30% cap allows $1,600 a month for a new loan after the card, which at 9.5% over 5 years supports about $76,200. Her cash flow would allow more ($2,300 a month), so her own cap sets the limit and leaves $700 a month spare.

Family Planning a Renovation

The Smiths take home $9,000 a month, spend $6,000 and pay $800 on a car loan. They cap debt repayments at 30% of pay.

Monthly income (after tax)
$9,000
Monthly expenses
$6,000
Existing debt repayments
$800
Your cap on debt repayments (% of take-home pay)
30%
Expected interest rate
9.5%
Preferred loan term (years)
5

The cap leaves $1,900 a month for a new loan after the car loan - about $90,500 at 9.5% over 5 years - with $300 a month spare. A smaller loan keeps more of a buffer.

Questions people ask

How much personal loan can I really afford?
It's a personal choice. Set the share of take-home pay you're comfortable putting towards all debt repayments, and check the cash left after expenses - the calculator uses whichever is lower.
What debt-to-income ratio do lenders look for?
Lenders don't publish a single limit; they assess your income, expenses and existing debts under responsible lending rules, and a high ratio makes approval harder.
Should I borrow the maximum I'm approved for?
No. Approval amounts are based on what you can technically repay, not what's comfortable. Borrow only what you need and can repay without lifestyle sacrifices.
How does my credit score affect affordability?
A higher credit score typically means access to lower interest rates, which increases how much you can borrow at the same repayment amount.

The terms, in plain English

Debt-to-Income Ratio (DTI)
The share of your monthly income that goes to debt repayments.
Disposable Income
Money left over after paying all necessary expenses. This determines your actual borrowing capacity.
Serviceability Buffer
Extra margin lenders add to ensure you can still repay if rates rise or expenses increase.
Net Income
Your take-home pay after tax and superannuation deductions.

Official sources

Personal Loan Calculator

Calculate exact repayments for a specific loan amount

Loan Comparison Calculator

Compare loan offers side by side to see which costs less

Debt Consolidation Calculator

See if consolidating debts could save you money