The Finance Algorithm

Variable Income Loan Planner

Plan personal loan repayments around irregular freelance or casual income

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

Your numbers

Updates as you type
$
$5k

Your typical monthly income (average over past year)

$
$2k

Income in your worst month last year

$
$9k

Income in your best month last year

$
$3k

Fixed costs you must pay each month

%

The share of your lowest month's spare cash you want left over after the repayment

$
$15k

How much you want to borrow

%
12%

Rate available for your situation

3

How long to repay the loan

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

Variable income loan: repayment check

Monthly repayment

$498

vs $0 with your 20% buffer

Low-month surplus

-$1,498

after essentials + repayment

Income swing

140%

highest less lowest month, of the average

Three months of repayments

$1,495

savings that would cover three low months

Money left after essentials + loan repayment

In your lowest, average and highest months.

-$1,498Low month$1,502Average month$5,502High month

Monthly repayment at different loan terms

A longer term lowers the repayment but adds interest.

$7062y$4983y$3954y$3345y$2657y
Your lowest month
Your lowest month doesn't cover the repayment
In your lowest month you'd be $1,498 short after essential expenses and the repayment.

How it works

Freelancer, contractor or casual? When your income moves around, a repayment that's easy in a good month can hurt in a slow one. This works out a repayment you could keep up in your leaner months.

  1. 1Enter your average monthly income over the past year
  2. 2Add your lowest and highest earning months
  3. 3Include your fixed monthly expenses
  4. 4Enter the loan amount you need
  5. 5See safe repayment options based on your income range

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

Freelance Designer

Alex earns $3,000 to $8,000 a month (about $5,500 on average) with $2,800 of essentials, and wants $12,000 at 11% over 4 years, keeping 20% of a low month's spare cash as a buffer.

Average monthly income
$5,500
Lowest month income
$3,000
Highest month income
$8,000
Monthly essential expenses
$2,800
Loan amount needed
$12,000
Expected interest rate
11%
Loan term (years)
4
Buffer to keep in a low month
20%

The repayment is $310 a month, but a $3,000 month leaves only $200 after essentials - $110 short. Borrowing less, a longer term or three months of repayments set aside would cover the low months.

Casual Hospitality Worker

Sam earns $2,500 to $5,000 a month (about $3,800) with $2,000 of essentials, and wants $8,000 at 12% over 3 years with a 20% buffer.

Average monthly income
$3,800
Lowest month income
$2,500
Highest month income
$5,000
Monthly essential expenses
$2,000
Loan amount needed
$8,000
Expected interest rate
12%
Loan term (years)
3
Buffer to keep in a low month
20%

The $266 repayment fits under his $400 cap for a low month, leaving $234 spare in his worst month.

Questions people ask

Can I get a personal loan with irregular income?
Yes, but you'll need to provide more documentation (usually 2 years of tax returns, BAS statements). Approval is based on your provable average or lowest income, and rates may be slightly higher.
How should I calculate what I can afford with variable income?
Use your lowest regular month income, subtract essential expenses, and keep at least 30% as buffer. The remaining amount is your safe maximum repayment.
What happens if I can't make a payment during a slow month?
Contact your lender immediately - many offer hardship provisions for temporary difficulties. If you've made extra payments through redraw, you can access those funds. This is why building a buffer is critical.

The terms, in plain English

Income Volatility
The degree to which your income fluctuates month to month. Higher volatility = more conservative borrowing needed.
Buffer Payments
Extra payments made during high-income months that can be redrawn during low months.
Redraw Facility
Ability to withdraw extra payments you've made back from the loan if needed.

Official sources

Affordability Calculator

Standard affordability assessment

Emergency Fund Calculator

Especially important for variable income

Hardship Calculator

Plan for temporary income drops