Self-employed borrowing power calculator
Your business
Your household
Calculator assumptions
We compare three ways lenders commonly assess self-employed income: a two-year average (or the lower year) with no add-backs; a two-year average with add-backs; and your latest year with add-backs, which some lenders accept when your income has grown.
Borrowing power is worked out the same way as our borrowing power calculator, counting 3.8% of your credit card limits as a monthly commitment. Add-backs must be shown in your tax return or financials and confirmed by your accountant. Not every lender accepts every add-back.
This is an estimate, not credit advice or a loan offer.
Your estimate
You could borrow up to
$504,369With the right lender, using $116,000 of assessed income (add-backs of $21,000)- Extra borrowing power from the right lender and add-backs
- $178,300
- Which means a home up to
- $654,369
The lender you choose decides which of these numbers you get. We match your tax returns to the lender whose policy fits, before you apply.
Your tax return isn’t your borrowing power
When you’re self-employed, your accountant’s job is to keep your taxable income down. A lender’s job is to work out what you really earn. Those two numbers are rarely the same.
Most bank calculators simply take your taxable income. Lenders don’t have to. They start with your net profit before tax and can add back expenses that don’t reflect real spending, like depreciation or a one-off legal bill.
The example shows how add-backs can turn $60,000 on paper into $88,000 of assessable income, without earning a dollar more or paying more tax.
How add-backs change the picture
| From the tax return | Amount |
|---|---|
| Net profit on your tax return | $60,000 |
| Add back: depreciation | + $15,000 |
| Add back: interest on a loan being paid out | + $5,000 |
| Add back: one-off legal bill | + $8,000 |
| Income a lender may assess | $88,000 |
Not every lender accepts every add-back, and your accountant needs to evidence each one.
What lenders can add back to your income
Depreciation
A tax deduction that isn’t money leaving your account. Most lenders add it back, though some cap it.
Interest
Interest on a business loan that this home loan pays out, or that the lender accounts for separately, can usually be added back.
One-off expenses
Costs that won’t repeat, like a legal dispute, a big equipment repair or a business relocation. Your accountant needs to confirm them.
Extra super
Voluntary super contributions above the compulsory amount. Some lenders accept this, others don’t.
Your own wages (company or trust)
If your company pays you a salary, that counts as income, as long as it’s not counted twice alongside profit.
What doesn’t count
Turnover, regular running costs, staff wages, rent and any income that isn’t declared on your tax return.
Which year of income will a lender use?
| Your situation | What many banks do | What some lenders do |
|---|---|---|
| Your income went up | Average your last two years | Use your latest year on its own |
| Your income went down | Use the lower year | Look at why, such as a lost contract, and may still average |
| You have one tax return | Decline, or cut your income by around 20% | Accept 12 months of financials, especially if you worked in the same industry before |
| Your latest return isn’t lodged | Use your older returns | Wait for lodgement, or assess BAS and an accountant’s letter (low doc) |
Full doc
Two years of tax returns and financials. The widest choice of lenders and standard rates. Where most self-employed borrowers should start.
One year
One year of returns plus proof of experience in your industry. Fewer lenders, but often the same rates if you qualify.
Low doc
BAS, business bank statements or an accountant’s declaration instead of tax returns. Usually a higher rate and a bigger deposit, so use it when it’s genuinely the right fit.
Frequently asked questions
Get in touchHow long do I need to be self-employed to get a home loan?
Most lenders want two years of trading, but a growing number accept one year of tax returns, and a few will look at you sooner if you worked in the same field before. The calculator shows what’s possible at each stage.
Can I get a home loan with only one year of tax returns?
Yes, with the right lender. Several lenders accept one year of financials. Banks that require two years will often decline you or cut your income, which is why the lender you choose matters.
Do lenders use my turnover?
No. Lenders start from your net profit before tax, then add back items like depreciation and one-off costs. Turnover doesn’t count, however big it is.
What are add-backs?
Expenses that reduce your taxable income but don’t reflect money you actually spent, or won’t spend again. Common ones are depreciation, interest on debts being paid out, one-off costs and extra super.
Can I get a home loan if I have ATO debt?
Often, yes. Some lenders accept ATO debt if you’re on a payment plan and keeping up with it, and some can refinance it.
Why does lender choice matter more in 2026?
Since February 2026, APRA has limited how many new loans banks can write at six times the borrower’s income or more. If your borrowing is near that level, picking a lender with capacity becomes even more important.
The right lender, before you apply
The bank that holds your business account isn’t automatically the right bank for your home loan. We match your income documents to the lender whose policy fits, and package the application so it’s assessed properly the first time.
Read our guide to how lenders assess self-employed borrowers.
Tell us about your business
We work out your income lender by lender
We work with your accountant
You apply once
Self-employed? Let’s find the lender that gets it
We compare 30+ lenders and know which ones accept one year of returns, add-backs and complex structures. It’s free. Lenders pay us, not you.
