Your take-home pay
Income after tax, KiwiSaver contributions, student loan repayments and other PAYE deductions. Business income, bonuses, commission, overtime and rental income are calculated differently by each bank.
How it works
How Banks Work Out What You Can Borrow
Living costs
Your regular household spending, which the bank deducts from your take-home pay before working out what is left for repayments.
A higher test rate
Banks check you could still afford repayments at a test rate, which is higher than the rate you’d actually pay.
Debt-to-income limit
Most new lending is capped at 6 times gross income for a home, or 7 times for an investment property, including your other debts.
Why is the result different from other bank calculators?
Each bank uses its own test rate, living cost minimums and rules for counting income such as bonuses or rent. This calculator uses typical 2026 settings, so it gives a realistic guide rather than any one bank’s answer.
Why do credit card limits reduce what I can borrow?
Banks assume you could use your full limit, so they count a monthly repayment of around 3% of the limit, even if you pay the card off each month. Reducing or closing unused cards can increase what you could borrow.
What is the debt-to-income limit?
Since 1 July 2024 the Reserve Bank has limited how much new lending banks can do at high debt-to-income ratios. Most lending is capped at 6 times gross income for owner-occupiers and 7 times for investors, including your other debts.
Some lending is exempt, such as new builds and the Kāinga Ora First Home Loan.
Does this include my deposit?
The headline figure is the loan amount. The property price shown underneath adds your deposit. Your deposit also affects your loan-to-value ratio, which you can check with our LVR calculator.
Can I save or share my results?
Yes. Your numbers are kept in the page address as you type. Use “Copy link to these numbers” to share them, or bookmark the page to come back later.
Next step
Find Out What A Lender Would Actually Offer
Every bank works it out differently. Sarah can compare multiple banks and lenders, and help you get pre-approved so you know your real budget before you start looking.
This calculator is a guide only and is not a loan offer, pre-approval or personalised financial advice. It uses 2026-27 tax rates, an assumed test rate and indicative living cost minimums. Each lender applies its own criteria, test rates and expense assessments, so the amount a lender offers may be higher or lower.