This Loan Affordability Calculator estimates how much you can borrow based on your income, expenses, existing debts, and a lender-style DTI limit. Results update instantly and help you understand your borrowing power before applying.
Loan Affordability Calculator
Income
Monthly Expenses
Loan Settings
Most lenders use 30–40% as a typical DTI limit.Income vs Debt
Summary
Total Income: $
Total Debt: $
Max Borrowing: $
DTI After Loan: %
Compare Live Home Loan Rates
Below are live rates from Australian lenders. Updated automatically.
Frequently Asked Questions
Lenders use your gross income, living expenses (using HEM benchmarks as a minimum), existing debt repayments including HECS, and stress-test your repayments at a rate typically 3% above the loan rate. Most also apply a debt-to-income cap of 6-8x.
To afford a $600,000 loan at 6.2% (repayments ~$3,670/month), most lenders expect repayments to be no more than 30-35% of gross income — roughly $125,000-$145,000 household income as a guide. Use the calculator for your personalised estimate.
Yes — HECS repayments count as an ongoing expense reducing borrowing capacity. A $60,000 HECS debt on an $85,000 salary creates ~$2,550/year in compulsory repayments, which may reduce borrowing power by $30,000-$50,000.