borrowing-power
Borrowing Rate vs Power
Learn the difference between borrowing rate and borrowing power, and which one you need for your situation.
Updated Jan 2026
Borrowing Rate Calculator vs Borrowing Power: What’s the Difference?
Many people search “borrowing rate calculator” when what they actually need is a borrowing power calculator.
- Borrowing rate = the interest rate scenario you want to test
- Borrowing power = your estimated maximum loan size under assessment rules
Use both:
- Borrowing Power Calculator (capacity)
- Home Loan Repayment Calculator (repayment impact of a rate)
When a rate-focused tool is the right choice
Use a rate scenario tool if you want to:
- compare repayments at different rates
- test fixed vs variable
- see the interest cost difference over time
When you need borrowing power
Use borrowing power if you’re asking:
- “how much can I borrow?”
- “how does HECS affect borrowing power?”
- “do credit card limits reduce borrowing capacity?”
Start here:
FAQ
Is borrowing rate the same as borrowing capacity?
No. Rate calculators test repayments. Borrowing capacity estimates maximum loan size based on income, expenses and debts.