Borrowing Power Calculator – Determine How Much Can You Borrow

Determine how much you may borrow with a borrowing power calculator. Home loans, cash loans and much more. Monzi explores how you can use an online calculator today. We’ll break down everything that you need to know and what information you need to provide to get an estimate of your borrowing power. Read on to learn more today.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What is my borrowing power?

Borrowing power is a measure of the amount of money that a credit provider may lend you, based on your financial situation. In other words, after considering your budget and other on-going costs, what loan amount would potentially be affordable for you. Given this, your borrowing power will depend on your income, expenses, credit history and a range of other factors.

In addition to this, your borrowing power will depend on the loan that you are applying for. For instance, your home loan borrowing power and your personal loan borrowing power will be two separate figures. However, each may be useful to you if you are looking to apply for that credit product.

Ultimately, your borrowing power provides a starting point. Once you understand what you can potentially borrow, you can then find and apply for a loan that’s suitable for you.

While that covers the basics, you probably want to know how it’s calculated and what your personal borrowing power is. Luckily, that what Monzi’s here to explain. Read on as we cover all that you may need to know.

How is my borrowing power determined?

As we mentioned, lenders determine your borrowing power based on your financial situation. While exact formulas may vary between lenders, in most cases, they will calculate your borrowing power on the same details.

As a guide, factors that may influence your borrowing power include:

  • Income
  • Expenses
  • Outstanding debts
  • Credit limits
  • Credit history
  • Deposit amount (where applicable)
  • Any assets
  • The type of loan that you are applying for.

Moreover, there may be additional considerations too. This is simply a quick list to outline some key factors.

What is a borrowing power calculator?

A borrowing power calculator is a free and easy-to-use tool offered by many lenders online. In short, depending on the loan you need, you’ll simply have to enter a few key details. From there, the calculator will generate estimates of your potential borrowing power as well as a repayment amount that may be suitable.

As a result, a borrowing power calculator can do the work for you. Best of all, it should be able to provide instantaneous results, so there’s no need for you to wait. Just hit “Calculate” and you’ll receive an estimate in seconds.

However, when it comes to borrowing power calculators, remember that they are only there as a guide. While they will provide an estimate of your borrowing power, understand that it may not always be precisely accurate. Instead, use it as a starting point to determine the loan you may apply for.

What information will I need to provide?

To get an estimate of your borrowing power, you’ll need to provide a few key details. As a guide, most calculators will require the following:

  • Personal details: most calculators will ask you to enter your marital status, whether you are applying as an individual or a couple and how many dependents you have.
  • Income: how much do you earn before tax each month? In addition to this, you may need to provide details of any income you receive from sources other than your job. This may include rent payments or share dividends.
  • Expenses: how much do you spend each month on bills, rent and living expenses? Moreover, do you have any outstanding debts or on-going loan repayments?

Based on these details, the calculator will generate an estimate of your borrowing power and the possible repayment amount that would suit your budget. With this, you may be able to modify the interest rate, deposit amount or loan term to see how that may impact your borrowing power and costs.

What are the different types of borrowing power?

Your borrowing power will vary based on the loan you are applying for. As a guide, examples of different types of borrowing power include:

Home loan borrowing power calculator

In the market for your first home? Maybe you’re looking to purchase an investment property. Whatever your reason, understanding your home loan borrowing power is a crucial first step before you dive into the world of home loans. With a clear idea of the loan you can afford, you may then be able to find a property that suits both your family’s needs and your financial situation.

Car loan borrowing power calculator

Whether you need a new car for your commute or to get the kids to school in the morning, it’s important to understand how much you can borrow. While we’d all love a big car with all the features, you must stick to your budget. Ultimately, if a car can get you from Point A to Point B, then that’s all you need.

Personal loan borrowing power calculator

Finally, if you’re dealing with a pressing expense but don’t quite need to borrow as much as you would with a car loan or home loan, then a personal loan may be right for you. With this, a personal loan borrowing calculator may be able to outline how much you can borrow. As a result, you may apply for an instant loan to cover a range of personal expenses, such as car repairs or a new fridge.

If you do need a cash loan, then apply with Monzi’s lender-finder service from $300 to $10,000. While we cannot say what your borrowing power may be, we could match you with an Aussie lender in just 60 minutes.

Where can I find a calculator online?

Finding a calculator should be relatively straightfoward. Just search the kind of calculator you’re after (e.g. home loan borrowing power calculator) and you should find a litany of lenders who may offer these calculators via their website.

Click on whichever one takes your fancy and follow the prompts to complete the process. As a guide, you’ll usually need to enter the key details we outlined earlier. Hit “Calculate” and you should receive an instant estimate of your borrowing power and what your repayments might be.

However, remember that all calculators (e.g. personal loan calculators, etc.) generate estimates. In other words, the figures that are generated may not accurately reflect your true borrowing power. This will be determined when you apply and your lender conducts a complete assessment of your financial situation.

Which calculator is the best?

In short, Monzi cannot say.

As we’ve mentioned, many lenders will offer borrowing power calculators on their website, which you may use for free. So, do your research. Find a lender that offers a loan that you’re looking for and test out their calculator to determine what your borrowing power may be.

Once you’ve done that, find another. See how your borrowing power may change between lenders based on the information you provide. All lenders will have their own lending criteria, so there’s a good chance that your borrowing power won’t remain the same.

Again, though, it’s up to you to find a calculator that suits your needs. If you’re after a car loan calculator, then the best option for you won’t be the same as for someone needing a home loan calculator.

Will my deposit impact my borrowing power?


If you’re looking to apply for a home loan, then the amount that you can pay upfront as a deposit will impact your borrowing power.

As a guide, the larger your deposit is, the greater your borrowing power will be. As a result, if you are after a low deposit home loan because you can only pay a 5% deposit, then you may not be able to borrow as much as someone who can pay a home loan deposit of 20% or more.

Are borrowing power calculators accurate?

As with personal loan calculators, home insurance calculators and other similar products, borrowing power calculators can only provide estimates. In other words, while they may give you a good idea of your potential borrowing power, ultimately, you should only use it as a guide.

Realistically, this makes sense. When you use a calculator, you just need to provide a few key details (e.g. loan, income, expenses, etc.). On the other hand, when you apply for a loan, such as a variable rate home loan, you must provide a complete record of your financial situation. Moreover, lenders will consider a greater range of information (e.g. your credit history) to determine the loan you should be offered. As a result, your true borrowing power may vary from the figure determined by an online calculator.

Given this, think of borrowing power as a starting point. Check how much you may be able to borrow and adjust certain figures (e.g. your repayment term) to see the effect it might have. That way, you can go into your application with a clear understanding of your borrowing capacity.

Are there any ways to increase my borrowing power?

Yes, there are several ways that you may increase your borrowing power. If you can do this, then you may be approved for a larger loan than you otherwise would have been. See below for Monzi’s quick guide:

Pay a larger deposit

As we’ve already touched on, paying more upfront may allow you to borrow more. While it may not be easy and it will take time to save, lenders prefer larger deposits, given that it may decrease your Loan-to-Value Ratio. In other words, it may potentially reduce the risk associated with lending you money.

Get your budget under control

Your budget is calculated based on the difference between your income and expenses. While it’s difficult to increase your income, it is possible to lower your expenses. One way to do this could be to make a budget. See how you are spending your money each month and find areas where you could cut costs. You’d be surprised how much extra you can save, just by eliminating or reducing some of your unnecessary expenses. In turn, this may increase your borrowing power.

If you are looking to make a budget, then try out the free Moneysmart budget planner today to get an idea of where your money is going each month.

Repay your debts

Whether you’re dealing with credit card debt or have an outstanding quick loan, owing money to other lenders will reduce your borrowing power. After all, if you’re already making repayments on an existing loan, then you’ll have less money to put towards your new loan repayments. As a result, if you want to increase your borrowing power, pay off your existing debt before applying for a new credit contract.

Take care with your application

You must provide your lender with up-to-date and accurate information. That way, they may be able to calculate your borrowing power with greater precision. In some cases, this could lead to your borrowing power increasing.

As a guide, ensure you provide accurate details regarding the following:

  • Your income
  • Current expenses
  • Outstanding debts
  • Assets and their value
  • Any other information that may be relevant.

Shop around

Lending criteria do vary. As a result, your borrowing power will too. Given this, it’s important to compare your options. While banks have long been the traditional mortgage lenders, there are some online home loan lenders out there who can potentially offer you a great deal.

Are all borrowing power calculators the same?


To a certain extent, borrowing power calculators will all be the same, in the sense that they will usually ask for the same details. However, your borrowing power figure that is generated may vary, given that banks, lenders and credit providers don’t necessarily all use the same formulas.

As a result, if you have some time on your hands and want to see the difference, don’t be afraid to try out a few different calculators. This will be good practice for when it comes time to apply for a loan. After all, you must compare your loan options and the associated costs to determine which is best for you.

Borrowing power calculator sitting on a desk next to a notebook

Do these calculators consider my credit score?


This is something that you must keep in mind when it comes to borrowing power calculators. They will not consider your credit history. As a result, while they may provide you with an estimate of your borrowing power, your true borrowing power may vary.

For most lenders, your credit history will play a role in determining how much you can borrow. As a guide, if a credit check shows that you have been a reliable borrower in the past, then you may be offered a greater loan amount than if you have bad credit and a number of defaults on your credit report.

Ultimately, this comes down to risk. If you have good credit, then lenders will trust your ability to repay the money you borrow. However, if you’ve missed payments in the past or defaulted on a loan, then lenders may be hesitant to allow you to borrow a significant sum of money. After all, past behaviour is often the best predictor of future behaviour.

So, while borrowing power calculators are a handy tool, remember that they don’t tell the whole story.

Should I always borrow the maximum amount possible?


The maximum amount you are able to borrow shouldn’t always be the amount that you do borrow. Instead, you should always aim to borrow only the amount that you need.

The logic behind this is simple. If you borrow money from a bank or lender, then you must repay it. The more you borrow, the greater your repayments will be. Similarly, you’ll have to pay more interest too. As a result, you may find your budget stretched thin with too much of your income being put towards your loan repayments.

Given this, you must take your financial situation into account before you apply. Where possible, determine a repayment amount that you can comfortably afford. A good rule of thumb is that your mortgage loan repayments shouldn’t exceed 30% of your income. That way, you can ensure you still have enough cash to cover your everyday expenses. Moreover, you may also be able to put some money into your savings account for a rainy day.

Ok, I know my home loan borrowing power, what do I do now?

Once you have a clear understanding of your borrowing power and the potential first home loan that you may apply for, it’s time to move onto finding the right loan. To do this, you’ll need to compare your options. See below for a quick list of points to consider:

  • The costs: you must repay your home loan with interest. Will you apply for a variable or fixed rate home loan? While a slightly lower interest rate may not seem like much, savings can add up over time.
  • The terms: how long do you have to repay your loan? Are the associated repayments manageable for your budget?
  • Additional features: are you able to get a split rate loan? Maybe you can make use of an offset account or redraw facilities.
  • The lender: banks commonly offer mortgage loans. However, some online lenders may also. Find the one that offers the best loan for you.

Alternatively, if you are unsure or would prefer to seek professional advice, then don’t hesitate to reach out to a mortgage broker. They may assist you with your application and help you find a loan that works for your needs, means and objectives.

In addition to this, you will also need to find a suitable property to purchase. With this, don’t rush in. Buying a house is the most significant financial commitment that you will make. So, take the time to find one you love.

What other calculators are there?

These days, there are plenty of online calculators. While borrowing power calculators are one example, there may be a calculator out there no matter what you’re looking for. As a result, they may be a useful resource when you’re trying to make an important financial decision.

To give you an idea, common examples include:

And the list goes on. If any of the above apply to your situation, then learn more with Monzi today.

Does Monzi offer a borrowing power calculator?


Unfortunately, at Monzi, we cannot offer you a borrowing power calculator. Instead, we’ve simply done our best to outline how these calculators work and how you may use them to determine the amount you could borrow. Luckily, there are plenty of lenders who offer these calculators. So, do your research and we’re sure you’ll find one in no time.

In any case, what we may be able to offer instead is quick and easy access to some great Aussie lenders. In other words, if you need a cash loan today, then Monzi’s lender-finder service could be for you.

Apply today and we could match you with a lender offering instant cash loans online from $300 to $10,000. With this, all it takes is one application. As a result, we could save you the time and hassle that comes with finding a lender. Let Monzi do the heavy lifting for you today.

How do cash loans work?

Cash loans are your typical principal and interest loan.

With this, if your application is approved, then your lender will transfer your loan amount to you. However, any money that you borrow must be repaid. As a result, lenders will divide your costs into a series of even repayments over a fixed term. Moreover, they will apply both fees and interest on top of your principal sum.

At Monzi, we work with lenders offering quick money loans from $300 to $10,000 that may come with repayment terms ranging from 12 to 24 months. As a result, there may be a manageable option for your budget.

Finally, and best of all, you may use your cash loan to cover an extensive list of personal expenses. So, whether you need new furniture, are moving house or have to get your car repaired, a cash loan could help you bridge the financial gap.

Apply today.

Is a cash loan right for me?

If you use a personal loan borrowing power calculator, you may find that you could potentially borrow $1,000, $5,000 or perhaps even more. However, just because you can borrow money, doesn’t necessarily mean that you should.

While emergency cash loans may get you out of a bind, they do come with costs. Lenders charge fees and interest, meaning you may repay significantly more than you borrow. Moreover, you’ll be locked into a fixed repayment term over which you must make a series of payments until the balance of your loan is paid off. If you fail to do so, then your lender may charge late fees and your credit score might take a hit.

Given this, before applying, ensure you ask the following questions to determine if an instant cash loan is right for you:

  • What is my reason for applying?
  • Is there any other way for me to cover this expense?
  • Could I cut other costs to reduce my loan amount?
  • What’s my income?
  • What are my regular, day-to-day expenses?
  • Do I currently have any other outstanding debts?
  • What repayment amount would fit my budget?

Am I eligible to apply with Monzi?

After considering the pros and cons, you decide that a fast cash loan is right for you. With this, you want to apply with Monzi’s quick and easy lender-finder service. While that’s great to hear before you begin, ensure you meet our eligibility criteria:

  • At least 18 years old.
  • Australian citizen or permanent resident.
  • Can provide a mobile number and email address.
  • Have an online bank account with at least three months of transaction history.

How do I apply?

Once you’ve determined your borrowing power and that you are eligible, the only thing left to do is apply. At Monzi, it’s as easy as can be. Just follow these quick steps and we could match you with an Aussie lender before you know it:

  1. Pick a loan amount and repayment term.
  2. Complete the online application form by providing the necessary personal and financial details.
  3. Once you’ve submitted your application, we take over. Our automated system will scan through our network to try and match you with an available lender.
  4. At the conclusion of our search, we’ll contact you to let you know the results. If we successfully match you with a lender, then we’ll pass your application onto them.

Note that we cannot guarantee approval for all applicants. Lenders will assess your application to determine your outcome.

Got questions? Reach out

Monzi could be your go-to if you need a personal loan but don’t want to deal with the stress and hassle of having to find a lender. However, if there is anything you are unsure about, then don’t be afraid to get in touch.

You can email us any time at and we’ll get back to you with a response. Just keep in mind that we only monitor this account during business hours. No need to worry, though, as we’ll reply as soon as we return to the office.

In addition to this, keep in mind that if you have any questions regarding your borrowing power, then Monzi may be unable to assist you. Instead, you may need to contact a lender directly or use a borrowing power calculator online.

Borrowing power calculators and Monzi

And that brings us to the end. At Monzi, we’ve done our best to outline borrowing power calculators and how they may help you. If you are looking for more calculator advice, why not read up on the credit card repayment calculator. It’s now up to you. If you need a loan today, do your research and make use of the online resources at your disposal. While it may take time, trying to find the best personal loan or home loan for you is always a good idea.

In any case, if you need quick cash today, Monzi could help set you on the right path. Apply today from $300 to $10,000 and we may be able to connect you with an available lender from our extensive network. With fast outcomes and easy applications, Monzi may be the stress-free service for you.

Scroll up to the loan slider or hit “Apply Now” to get started today.

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Alternatively, if you want to read more from Monzi, why not check our article on loan protection insurance?

Factor In Costs

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.