Personal Loan Borrowing Power Calculator

See how much you can borrow — enter your monthly budget, rate, and term.

See your maximum personal loan amount from your monthly budget. Quick estimate for Australian borrowers. Free.

01 —INPUTS

What you can comfortably repay each month.

Typical personal loan rates range 8–15%.

Most personal loans run 1–7 years. Longer terms increase total interest but reduce monthly payments.

02 —RESULTS
Maximum loan amount0.00

Your personal loan borrowing power depends on the monthly repayment you can comfortably afford. Australian lenders typically cap personal loan repayments at around 30% of your gross income, although limits vary by lender and whether the loan is secured.

A higher monthly budget, longer loan term, or lower interest rate all increase your borrowing power. But remember — borrowing more means paying more total interest over the life of the loan.

Once you know your borrowing limit, run the numbers through the personal loan repayment calculator to see the full monthly cost at different loan amounts.

Common questions

How is personal loan borrowing power calculated?
Lenders work backwards from your monthly repayment budget using the interest rate and term you choose. They calculate the maximum loan amount that fits within your monthly payment, factoring in the interest cost. This calculator does the same math to give you a quick estimate.
What debt-to-income (DTI) ratio do Australian lenders use?
Most Australian personal loan lenders prefer total debt repayments to stay under 30–40% of your gross income. Some lenders apply stricter limits for unsecured loans. Your actual approval limit depends on your income, credit history, and existing debts.
Does my credit score affect my borrowing power?
Yes — your credit score influences the interest rate you're offered, not the borrowing formula itself. A lower score means a higher rate, which reduces how much you can borrow for the same monthly budget. Use a higher rate in the calculator to model this.

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Last updated 6 May 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

Reviewed by AusTax Tools Editorial Desk

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