Personal Loan Borrowing Power Calculator

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

01 —INPUTS

Monthly budget (AUD)

What you can comfortably repay each month.

Annual interest rate (%)

Typical personal loan rates range 8–15%.

Loan term (years)

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

02 —RESULTS

Maximum loan amount$37,652

How borrowing power works

This result is payment-based: it converts the monthly amount you say is affordable into a loan principal at the selected rate and term. A lender may offer less after checking living expenses, other credit limits, income stability, credit history and its own policy.

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.

FAQ

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?

There is no universal debt-to-income limit for personal loans. A lender assesses income, living expenses, existing debts and credit limits, credit history, employment and its own product policy. Set the calculator's monthly budget from your actual surplus and treat the result as a scenario, not an approval limit.

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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