What this calculator is for

It shows the tax and Medicare levy on a gross salary and what lands in your account after them. That is the number that matters for a mortgage, because a lender assesses your loan against take-home pay and living costs, not your headline salary.

Gross pay, net pay and what the lender uses

Lenders start from gross income, apply tax using the current tables, then deduct your declared living expenses, other debts and a buffer on the interest rate before deciding what you can borrow. Two people on the same salary can get very different answers depending on HECS, a car loan, a credit card limit or a child. If you want the borrowing side of that sum, the Borrowing Power Calculator runs it.

Common things people get wrong

A HELP or HECS debt is repaid through extra tax withheld from your pay, and lenders treat it as a reduction in income, not as a loan. Salary packaging and salary sacrifice can raise your take-home pay but some lenders will only assess the cash component. Bonuses and overtime are usually counted at a discount, or averaged over two years. If a large part of your income is variable, expect the lender to shade it.

Self-employed?

This calculator is built around PAYG salary. If you are self-employed, a lender works from your tax returns and notice of assessment rather than a payslip, and some add back depreciation and one-off expenses. The Alt/Low Doc Borrowing Calculator is the better starting point.

Last updated: October 2026