Assess your loan serviceability using the same HEM benchmark and income-to-expense methodology used by Australian lenders. See your monthly surplus or deficit in real time.
Used for geographic HEM adjustment
No other income added. Click "Add income" to include rental, investment returns, government benefits, etc.
Lenders apply the HEM (Household Expenditure Measure) as a floor. If your declared expenses are lower than the benchmark, lenders will use the HEM figure instead. Be as accurate as possible.
Monthly Surplus / Deficit
--
Enter your net monthly income to see results
Our lending specialists can review your full situation and find lenders whose serviceability criteria match your profile.
Serviceability is a lender's assessment of whether you can comfortably afford loan repayments given your income, expenses and existing financial commitments. It's the primary factor in whether your loan application is approved.
The Household Expenditure Measure (HEM) is a standardised benchmark used by Australian lenders to estimate minimum living costs. If your declared expenses are lower than the HEM for your household type, lenders will substitute the HEM figure. Geographic adjustments reflect cost-of-living differences.
Lenders assess credit cards based on your credit limit, not your outstanding balance or actual repayments. A monthly repayment obligation of approximately 3.8% of the total credit limit is typically assumed. Reducing or cancelling credit cards before applying can improve your serviceability.
APRA requires lenders to assess your ability to repay at a rate at least 3% above the loan's actual interest rate. This buffer is applied to new borrowings when calculating maximum loan amounts (though this calculator focuses on your cash flow position rather than maximum borrowing capacity).
Cost of living varies significantly across Australian states and territories. Lenders apply geographic adjustments to the HEM benchmark — for example, NSW and ACT attract a higher multiplier (reflecting Sydney and Canberra costs) while SA and Tasmania use a lower multiplier.
Common strategies include: reducing or cancelling credit card limits, paying down existing debts, increasing your income, reducing discretionary spending, and ensuring your declared expenses are accurate and realistic. A mortgage broker can identify lenders with more generous serviceability policies.
Use our full suite of Australian financial tools to plan your next move.