Borrowing Power Calculator
Enter your income details
Joint Income
Dependent children
Enter your expense details
Enter your loan details
View your results
You can borrow up to
$0
Monthly Repayment
$0.00
Fortnightly Repayment
$0.00
Weekly Repayment
$0.00
Loan Balance Chart
Total Payment
Loan Balance
Note: The information provided by the calculator is intended to provide illustrative examples based on stated assumptions and your inputs. Calculations are meant as estimates only and it is advised that you consult with a finance broker about your specific circumstances.
Description
This calculator estimates how much you may be able to borrow based on your income, expenses, dependents and loan assumptions.
Assumptions
- It does not take into account any possible fees i.e. up-front fees or ongoing fees.
- Interest rate does not change over the loan term.
- Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.
- It is assumed that a year consists 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
- No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.
- Buffer or Extra Interest Rate: In order to avoid the risk of interest increasing, many lenders apply a buffer / extra interest rate to calculate borrowing power but the repayments and total interests payable are still calculated without buffer rate.
- The borrowing Power total is calculated at the greater of the Interest rate input + a buffer of 3% or a fixed floor rate of 5.75%.
- The greater of the estimated Living Expenses input, or a default Household Expenditure Measure amount which is implemented in many Lenders serviceability calculations, is used to calculate the Borrowing Power.