How Much Can I Borrow Calculator – Borrowing Capacity

When looking to apply for any loan, it is pretty common to search for a how much can I borrow calculator. The loan calculator can be a handy tool when it comes to figuring out what you may borrow. Along with what may affect your borrowing capacity.

Whether it be for fast loans, no credit check loans, home loans, or small loans, a how much can I borrow calculator may be able to help you. Before you let yourself get carried away at the possibility of what you could use the extra cash for, start by setting realistic parameters for yourself.

Please note that specific ideas and products presented in this article may not be on offer by Monzi or 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.

Why would you need a how much can I borrow calculator?

Picture this; you’re planning to borrow some money to build a large home. You’ve already gone ahead and imagined yourself doing laps in a fifteen-metre pool. Perhaps baking for hours in an entirely marble kitchen, or maybe including a movie room into the floor plan. Then, you go in to complete your home loan pre approval. You are told you only have a borrowing capacity that allows for the average Australian suburban home.

This is why you should use a how much can I borrow calculator before you let your mind run into fairytale land. Knowing your borrowing capacity or borrowing power before you embark upon a loan application can help you to ground yourself. It can also help you understand whether you should start the loan process or hold off longer and continue saving.

You can use a how much can I borrow calculator for almost every type of loan you can think of. They are not exclusively for taking a mortgage loan. Having said this, Monzi wants to touch on multiple loan types in this article and discuss how a calculator may apply.

How much can I borrow calculator: Why might you need to borrow?

There are several reasons as to why you may want to borrow a third party’s credit. Whether this credit comes through an institution like a bank or credit union. Or via private lenders offering private loans, extra money is extra money.

In some instances, a person on the average salary may never be able to afford a home without the assistance of a loan. However, in other cases, you could obtain small cash loans to cover medical bills, burst pipes, or vet trips. Whether it’s car loans, boat loans, or a travel loan, you can take a loan to help with almost anything you can think of.

However, just because you have convenient cash at your fingertips doesn’t mean you shouldn’t be serious about any loan you take. Being blase with financial commitments can result in credit damage and hurt your future financial outlook. Ensure any money management decisions you make are wise.

Where can you find a how much can I borrow calculator?

The great thing about a how much can I borrow calculator is that you can find them online, for free. Many financial institutions will offer calculators of similar descriptions to help you calculate your borrowing capacity. Almost every bank you can name will offer one of these calculators to entice you to use their services. However, just because you use a banks calculator does not mean you have to complete your application through them.

If you are looking for alternative locations, the government’s MoneySmart sites have a helpful mortgage calculator that may help in some instances. Not only will it help you with your interest rate. It can also help with your repayments, your capacity and whether you can repay your loan sooner.

How do you calculate borrowing capacity?

Typically, regardless of the loan type that you are seeking, your borrowing capacity is calculated on the following information:

  1. Income: How many people are applying, information about your salary, any dependents you have, and your residential status.
  2. Commitments: You may need to add details of your rent/mortgage, repayments, credit card limits, and living expenses.
  3. Loan details: You may also need information on the loan type, term, and how often you want to make repayments.

You may need more or less information based on the loan type. However, the above paints a general idea of what your bank may require.

Personal loans

Personal loans are Monzi’s specialty. We are a lender-finder, working to match you to a lender who may be able to help you with the loan you seek. Monzi does not offer a how much can I borrow calculator. However, you can use one of these calculators to help you decide how much you should apply for, through us.

Our lenders aren’t often as strict as traditional bank lenders, meaning you may qualify for more than what the calculator says. However, this will be assessed once you match with a lender.

The great thing about personal loans is that you can use them for almost anything you can think of. Personal loans can offer you longer terms and more significant amounts than online payday loans. They also work to double as emergency loans, medical loans, or a renovation loan. This means that no matter what you need cash for, a personal loan should be able to offer you that helping hand.

Payday loans

Payday loans, on the other hand, function exactly like the name suggests. They are short term loans designed to help you get from one paycheck to another in times of struggle. Payday loans are often frowned upon due to their high interest rates. However, they are attainable if you think you may need one.

You can use a how much can I borrow calculator for payday loans if you decide to take such a loan. MoneySmart has a great payday loan calculator along with several pages advising about the potential dangers of payday loans and how to manage them safely. If you are looking for fast loans, payday loans aren’t always the best way to go, as you will most likely end up spending far more than you intended to. Hence, ensure you are well-read on the subject.

Home loans

Home loans are the loan type that you are most likely to require a how much can I borrow calculator for. Due to the typical size of any mortgage you are likely to take, you want to have a firm understanding of what you are about to undertake and whether it will fulfil your needs.

Home loans are abundant with additional fees and lengthy terms. This means that if you work out your loan capacity is less than what you want; you may want to hold off and save so that you can get it right the first time. There is always the option of seeking pre-approval for home loans to understand your capacity better.

However, if you are just starting down the path of buying a home, you may want a quick – free – understanding of where you are at. This is where a borrowing capacity calculator may be able to help.

What is equity?

In some circumstances, you may be able to add equity to your borrowing capacity. Most people who have been repaying a mortgage for multiple years have some equity in their current home.

Equity is the difference between your home’s current worth versus what you still owe on your mortgage. This means that if your home is currently worth $500,000 and you have so far repaid a fifth of your mortgage, you may have $100,000 of equity on your home. When seeking an additional home loan, you may be able to add this equity to your new application in place of a cash deposit. Investors looking to purchase an investment property usually do so.

Be careful with utilising equity. In some circumstances, if you fail to repay your home loan, the bank may be able to repossess a portion of your family home to cover the loan costs.

Use a how much can I borrow calculator

How can you increase your capacity?

If you are seeking a large loan and have used a how much can I borrow calculator, you may conclude that your borrowing capacity needs to increase. But how can you do this? Aside from knowing your credit score and increasing your income, here are some less obvious ways to improve your borrowing capacity:

  • Reduce your debts and credit card limits
  • Cut your expenses and organise your financial affairs.
  • Create a budget with room to put more money towards a deposit
  • Consider splitting financial liabilities with a partner.
  • Ensure you have the right loan product and a suitable term

These methods involve minimising what you already owe and the potential for you to put yourself into more debt. They also include organising your financial affairs so that all your financial information, such as tax, is up to date.

When applying for a loan, the goal is for you to be able to show your lender that you are responsible. The best way to do this is to have a large amount of savings, be orderly, and only have balanced and necessary debts.

All things loan deposits

Loan deposits are only a necessary evil with some loan types. You are more likely to be asked to provide some form of security than to put forward a deposit. Security, or collateral, is often used for large personal loans or car loans. The lenders in Monzi’s network may require you to put forward some form of collateral for loan amounts larger than $2,000. A deposit, on the other hand, is almost always exclusively attached to home loans.

Your home loan deposit depends on your lender’s loan-to-value ratio (LVR). The typical mortgage LVR is 20%. If your deposit is less than this, you will have to pay lenders mortgage insurance to protect your lender from the additional risk they are taking by lending to you. This means if you are looking at a property valued at $600,000 and want to meet the 20% loan-to-value ratio, you will need a deposit of $120,000.

This is a considerable amount of money to pay in cash. For this reason, it may be wiser to take a higher LVR loan and pay the lenders mortgage insurance so that you can get into a home faster.

How influential are security and deposits?

Both security and deposits are almost always necessary when taking a loan. If you have used a how much can I borrow calculator and worked out that you need to boost your capacity, security may be essential. Maybe you are a strong saver and know you will be able to make your repayments on time, using your car as security could be harmless. If you believe that you may not be able to make your repayments on time, you should reevaluate whether you need a loan.

Should you put down collateral and fail to repay your loan, the bank can repossess your asset. Meaning, not only will you owe on your loan, but you could also lose the car that you rely on for work.

Deposits, however, influence whether you will have to pay additional fees, along with how much you can access. One of the simplest ways to increase your borrowing capacity is by putting forward a larger deposit. You can also do so through the aid of a guarantor.

How much can I borrow calculator: Borrowing against your house?

How much you can borrow against your current home correlates with how much equity your home currently has. A how much can I borrow calculator may grant you the option to input home equity into the calculations. Not all calculators offer such an option. However, it is a straightforward way to work out what you may be able to borrow against your house.

Borrowing for a business

Business loans are pretty popular when it comes to business owners looking to upscale their companies. If you have ever used a how much can I borrow calculator for a business loan, you may know that it can be challenging to get business loan approval.

This is especially true if you are an entrepreneurial business owner as you can be quite a risk for a lender to undertake.

It isn’t the end of the world. You may have the option to borrow against your business. This does not mean that you can borrow against your business for personal reasons. Instead, it means that you may be able to use business assets as collateral for business loans Australia. This potential collateral could include buildings, equipment, vehicles, and possible inventory. Your lender should have an approved securities list (ASL) that clearly outlines what you may use to secure a loan.

Borrowing for a car

A car loan is typically not advisable. This is because as soon as you drive a car off the lot, its value begins to depreciate. Therefore you may likely end up paying extra in the long run than you would’ve if you paid in cash.

You don’t need to take a specific car loan to purchase a vehicle. You can use a larger personal loan for such a purchase. However, if you seek a more expensive car, you may want to consider using a how much can I borrow calculator first. Just like with a home loan, this will allow you to identify whether you have the appropriate cash to obtain the model you want.

Using your car as loan security

A vehicle is one of the most common assets used as loan security. This is as it is usually worth enough to cover a sizable chunk, or the total value, of your loan. Putting up your car as collateral is also a great way to show your lender that you are serious about your loan. This is because when you do so, you assume more risk for the loan. This works in the same way as lenders mortgage insurance for home loans.

You cannot put down anything as security that you don’t already own in its entirety. Meaning that if you are still paying off the last of a car loan, you won’t be able to secure another loan with it. When purchasing a vehicle, however, you may use the car that you are buying to secure the loan. That way, if you can’t repay the loan, you simply lose your purchase.

Borrowing to invest

Another reason you may use a how much can I borrow calculator is for an investment. There are many objects or concepts that you can invest in these days. Whether you are taking a home investment loan or margin loans, you will want to know what you are entitled to borrow.

Borrowing to invest, however, can be highly risky. This is because you are usually securing these loans against essential assets like your own family home. Meaning that you could be displaced if something does go wrong. If you are a first-time investor, informing yourself is the best thing you can do to mitigate risk. Don’t neglect an emergency savings account and have backup plans if you should struggle to make repayments on your investment.

How much can I borrow calculator: Other calculators

The list of calculators that you have available to you to aid in financial planning is long. Here is a shortlist of some other financial calculators that you may like to use to your advantage:

These are some great tools to help you move in the right direction. Whether this direction is towards a loan application or away from one to save a larger deposit. You can read about all the above calculators through Monzi if you are curious about how they may help you.

Are all loan criteria the same?

No. Whilst each loan will have similar underlying criteria, it will ultimately depend on the type of loan and your lender. Monzi cannot speak on behalf of all lenders. However, we can tell you the criteria for our lender-finder application.

To apply with Monzi, you will need to be at least 18 years of age and an Australian citizen or permanent resident. You’ll then need a valid mobile and email address and evidence of regular income over the last three months. That’s it! It’s as simple as can be. And to sweeten the deal, it doesn’t cost a cent to use our service. Monzi is removing the usual hassle of finding a lender from the process.

Criteria for other loans will vary depending on whether or not you opt to go through a financial institution or a private lender. It may also vary based on the size of the loan. A home loan, for example, is going to require far more documentation than other types of loans.

How much can I borrow calculator: Centrelink?

Whether you can take loans while on Centrelink depends on the lender you match with. Most financial institution lenders will not lend to a Centrelink customer. This is due to the risk of the loan not being repaid.

Monzi lenders, however, may be able to help you should you find yourself in this situation. If you have been receiving Centrelink payments regularly for at least three months, your lender may grant you loan approval. However, there are several things to try before doing this. The first is to check whether you are entitled to a cash advance from Centrelink. The second is to ensure that you don’t qualify for any additional grants or government help. Finally, ensure you have a budget in place that you are sticking to. Budgeting correctly may help you identify ways to cut back, to help you get by in a tricky patch.

Can you take a loan while unemployed?

In specific circumstances, some lenders within the Monzi network may work with you if you are unemployed. To do so, you may first want to take the above steps, as they also apply to this situation.

The majority of financial institution lenders won’t help you if you are out of work. Meaning if you are in this situation and need a loan, a private lender may be your best bet. Please note that you may be able to get free financial counselling through the national debt helpline. It may not be the best idea to put yourself into debt if you are already struggling to find work.

How much can you borrow in a joint loan?

Taking a loan with a second person may entitle you to a much more significant sum than you would have qualified for on your own. Monzi can’t tell you exactly how much you could borrow in a joint loan. However, a how much can I borrow calculator would be able to help you.

There is typically a box to add how many applicants you will be applying with when calculating your borrowing power. This may mean you will need to put in more data. Whatever you filled in for yourself, you may have to fill in a second time for your partner. This helps the calculator’s estimates to be more accurate. Which may, in turn, help you decide what your next step will be.

Monzi and borrowing calculators

Used a how much can I borrow calculator? Think you have a good grasp of how much you can borrow through the Monzi lender-finder? If you feel confident about taking a loan, it’s time to get started on your application. All you have to do next is click ‘apply now’. Then tell us how much you’d like and a little about yourself.

From there, we will do our best to match you to a lender who may be able to help in as little as 60 minutes. If we are successful, a lender will be in touch with you shortly after to finish the process. Monzi is 100% online and paperwork free to make our process easy.

If you want some further information on how we operate, however, don’t hesitate to ask. You can reach our friendly team at We’re waiting and happy to help.

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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


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true 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.

Loan amount

$2,001 - $4,600


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true 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. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true 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. Click here to see a worked example.