Finance Calculators
Mortgage Affordability Calculator
Before any lender's answer there is a simpler question: what does your income support? This page sizes the payment your income allows, turns it into a loan, then shows what the same income still supports if the rate rises and what each deposit level buys — with the cap and the deductions labelled as the assumptions they are.
Calculator
How the maximum loan is worked out
Annual income divided by twelve is the monthly income; the cap takes its share of it and your commitments are subtracted, so what remains is the payment this page allows. The loan is the amount that payment repays over the term at the rate — the present value of the annuity — and the affordable price is that loan plus your deposit.
About This Calculator
What It Does
This calculator answers the first question of a home purchase: what does your income support? Enter your gross annual income, what you already pay each month, the term and the rate. The page takes the payment-to-income cap you choose, subtracts your commitments, converts what is left into a maximum loan and adds your deposit to give an affordable house price. It then repeats the same question at higher rates and at several deposit levels, so one answer becomes a range you can plan around.
Worked Example
Example — the page opens with an annual income of A$125,000 and A$300 of monthly commitments, a 30-year term at 6% and a A$140,000 deposit. The income is A$10,416.67 a month; the 35% cap allows A$3,645.83, and after the commitments A$3,345.83 remains for the payment. That payment supports a loan of A$558,056.39, so with the deposit the affordable price is A$698,056.39. At +1 point (7%) the same payment supports A$502,903.57, -A$55,152.82 less, and a 10% deposit reaches A$620,062.66 at 90% loan-to-value.
Real-World Usage
Use it before viewing homes to set a price range you can defend, and before an application to see how much of your budget the commitments you already carry consume. It also answers the rate question directly: what your income still supports if the rate rises by one, two or three percentage points.
Local Context
This page opens with this country’s own defaults: a 6% rate over a 30-year term, a A$140,000 deposit and an annual income of A$125,000, all in AUD — this page’s figures for the country, not a market rate and not an offer. The payment-to-income cap (35%) and the stress margins of +1, +2 and +3 points over the rate you enter are stated assumptions here and on every page of this tool in every language: no lender rule and no published threshold.
Last reviewed: November 2026.
This is an estimate only and does not constitute a loan offer or commitment. Actual rates, terms and payments depend on lender policies, credit score, property location and other factors.
Frequently Asked Questions
How is the maximum loan calculated?
The page takes the share of your gross monthly income set by the payment-to-income cap, subtracts your monthly commitments and treats what is left as the payment. The loan is the amount that payment repays over your term at your rate, and the affordable price is that loan plus your deposit.
Is the payment-to-income cap a bank rule?
No. It is a stated assumption of this page, shown as an assumption next to the result and under the input in every language. It is neither a lender’s rule nor a published threshold; change it to the share of your income you are comfortable with and the whole result follows.
Why is the monthly payment the same in every deposit scenario?
Because the loan is the same in every row: it is what your income supports. A larger deposit buys a more expensive home at a lower loan-to-value ratio, while the payment — the part your income was always paying — does not move.