Purchasing Power Calculator
Knowing what a lender might lend you is only half the picture. Our purchasing power calculator brings your borrowing capacity, your deposit or equity, and the upfront costs of buying together, so you can see the actual property price you’re able to go after. It’s a clearer, more useful number than borrowing capacity alone, and it’s free to run, with no cost or obligation.
You’ll have a result in under a minute.
Most calculators stop at borrowing capacity, the amount a lender is willing to lend. But that number on its own can be misleading, because it doesn’t account for how much deposit you’re bringing in, or how much of your savings will get eaten up by upfront costs before you even get to settlement.
Purchasing power puts all three pieces together: borrowing capacity + deposit or equity, minus upfront costs, equals your target property price. It’s a much more honest picture of what you can actually afford to buy.
Borrowing capacity + deposit or equity − upfront costs = target property price.
| Deposit Saved | Borrowing Capacity | Est. Upfront Costs | Purchasing Power (Target Price) |
|---|---|---|---|
| $60,000 | $480,000 | ~$25,000 | ~$515,000 |
| $100,000 | $600,000 | ~$35,000 | ~$665,000 |
| $150,000 | $750,000 | ~$45,000 | ~$855,000 |
These figures are illustrative only, based on general Australian averages. Your actual purchasing power depends on your income, expenses, existing debts, credit history, and the state you're buying in, since stamp duty and registration fees vary widely by state.
These are illustrative ranges based on current Australian averages, not a quote. Your actual numbers depend on your loan, your lender, and your state’s registration fees.
If you’re on a fixed rate, there’s one more thing worth knowing before you get too far into the numbers: breaking a fixed term early can trigger a break cost, and in some cases that cost is large enough to outweigh the saving. Our team can check this for you before you commit to anything.
A number on a screen is a good starting point, but it’s not the same as knowing what to actually do with it. That’s where we come in.
At Penny, we go beyond the numbers. We’re a broker, not a bank, so once you’ve got a purchasing power estimate, we can compare across a 50+ lender panel to find the structure that genuinely suits your situation, not just the first offer that comes up. It’s a no-cost service to you, because we’re paid by the lender, not by you. With 1000+ loans settled, we’ve helped plenty of buyers turn a rough number into a confident offer.
Here’s what that means for you: you run the calculator, you get a realistic price range, and if it’s time to move, we help you understand exactly what a lender will see when you apply, plus how to strengthen your position if the number isn’t quite where you’d like it yet.
Not sure where to start? Book a free 15-minute discovery call and we’ll walk through your result together.
If you’d rather start from the lending side and work backwards, our borrowing capacity calculator shows what a lender might approve before deposit and costs are factored in.
To get a useful first estimate, have these roughly on hand:
Borrowing capacity is how much a lender might approve you for. Purchasing power goes further, combining that figure with your deposit or equity and subtracting upfront costs, to show the property price you can realistically pursue.
It gives you a solid working estimate based on general assumptions about lending and costs. Every lender assesses income, expenses and debts slightly differently, so we’ll always refine the exact figure once we understand your full situation.
Not necessarily. Many buyers purchase with less, though a deposit below 20% usually means lenders mortgage insurance applies, which adds to your upfront costs. We can talk through whether that trade-off makes sense for you.
Stamp duty is usually the biggest one, followed by conveyancing or legal fees, government registration charges, and sometimes building and pest inspections. Together these typically land between 3% and 5% of the purchase price.
Not automatically, since eligibility depends on your state and personal circumstances. If you’re a first home buyer, there’s a good chance a grant or concession could increase your purchasing power further, and we can check what applies to you.
Purchasing power isn’t just a figure, it’s the starting point for knowing what’s genuinely within reach, so you can search with confidence instead of guessing. Run the calculator above, and when you’re ready, our team will help you turn that estimate into a real plan. No cost, no pressure, just a clearer next step.
Book a free 15-minute discovery call, or call us on 1800 958 021.
