Financial Calculators
Essential calculators for property investment planning
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Your Maximum Borrowing Power
$356,780
Limited by: 30% Income Rule
Maximum Purchase Price (with deposit)
$456,780
All Lending Limits:
We show the most conservative (lowest) limit to ensure you can comfortably afford repayments.
How We Calculate This:
Step 1: Calculate Total Gross Income
$120,000 = $120,000 per year
Step 2: Calculate Income Tax
Using 2024-25 Australian tax brackets + 2% Medicare Levy
Annual tax: $31,867
After-tax income: $120,000 - $31,867 = $88,133
Monthly after-tax: $7,344
Step 3: Apply Bank's Minimum Living Expenses (HEM)
Your expenses: $3,000
Bank's minimum (HEM): $2,400
Banks use the higher amount: $3,000
HEM = Household Expenditure Measure. Banks use this to ensure realistic living costs.
Step 4: Calculate Net Available Income (After Tax)
$7,344 (after-tax) - $3,000 (expenses) = $4,344 per month
Step 5: Apply Serviceability Buffer
Your interest rate: 6.5% p.a.
Bank's assessment rate: 6.5% + 3% buffer = 9.5% p.a.
Monthly rate: 9.5% ÷ 12 = 0.7917%
Step 6: Calculate All Lending Limits
Method 1: Bank Serviceability
Based on after-tax income, expenses, and serviceability buffer
$516,667
Method 2: 30% Income Rule
Repayments shouldn't exceed 30% of gross monthly income
30% of $10,000 = $3,000
$356,780
Method 3: 10x Deposit Rule
Maximum loan = 10 × deposit
10 × $100,000 = $1,000,000
$1,000,000
Method 4: 6x Salary Rule
Maximum loan = 6 × annual income
6 × $120,000 = $720,000
$720,000
📊 Most Conservative Result
Of all the lending rules above, the 30% Income Rule gives the lowest (most conservative) amount of $356,780. We recommend using this as your maximum borrowing capacity to ensure financial comfort and avoid over-extending yourself.
Step 7: Add Your Deposit
$356,780 + $100,000 = $456,780
This is your maximum purchase price
⚠️ Important Disclaimer
This is an estimate only and should not be relied upon for financial decisions. Actual borrowing capacity varies significantly between lenders based on their policies, your credit history, employment type, existing debts, and other factors. Always consult with a licensed mortgage broker or financial advisor and obtain formal pre-approval from lenders before making property purchase decisions.