Borrowing power calculator
Enter your own numbers and the interest rate a lender quoted you. This site does not show rates.
Your estimate
Enter your numbers to see an estimate. Nothing you enter leaves your device unless you ask Zafar to check it.
Assumptions
- We test repayments at your rate plus 3 percentage points. Lenders add this safety margin (the "serviceability buffer") because APRA, the banking regulator, expects them to (APRA statement, 28 May 2026).[1]
- Principal and interest repayments, monthly, over the term you enter.
- We count 3.8 cents in every dollar of your card limits as a monthly repayment, whether or not you use the cards. Lenders use their own figure.
- The upper estimate uses your living expenses as entered. The lower estimate uses them 20 per cent higher, because lenders may use a higher figure than the one you enter.
- We do not adjust for tax, dependants, types of income or deposit. Results are rounded down to the nearest $1,000.
This is an estimate, not an offer or pre-approval. General information only. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to enter into any credit contract. Eligibility is decided by the scheme administrator and the lender. As Moneysmart says of its own calculators, results are estimates only.[2]
Next step
Lenders work this out differently from each other. Zafar can check your numbers against lender policy.
Your borrowing power is roughly the most a lender will lend you. This calculator gives a range on stated assumptions.
- It uses your own interest rate: this site does not show rates
- Repayments are tested at your rate plus 3 percentage points
- Each lender's own assessment decides the real figure
What do lenders actually assess?
Your income, your living expenses, your existing debts and card limits, and whether you could still make the repayments if rates rose. That last test is why they use a rate 3 percentage points above the loan's actual rate.[1] Each lender has its own policy on which income counts and how much of it.
Use your own interest rate. This site does not show interest rates. Enter the rate a lender has quoted you, or the rate on your current loan, to see the estimate.
Is the most I can borrow what I should borrow?
Not necessarily. The most a lender will approve leaves less room if rates rise, your income changes or you start a family. You can choose to borrow less than your limit.
Sources
- Australian Prudential Regulation Authority, APRA maintains current macroprudential policy settings (28 May 2026). Retrieved .
- Moneysmart (ASIC), Mortgage calculator. Retrieved .
Common questions
Why does the calculator ask for my interest rate?
This site does not show interest rates. Enter the rate a lender quoted you or your current rate, and the calculator tests repayments at that rate plus the serviceability buffer.
Is this my real borrowing limit?
No. It is an estimate on stated assumptions, not an offer or pre-approval. Each lender assesses your full situation under its own policy.
Talk to Zafar
Call Zafar, request a call back or send a message. Zafar works with clients across Australia by phone and video, and meets clients in person in Melbourne.