Net to Gross Income Calculator

Why net to gross matters for a home loan

When you apply for a mortgage, lenders don't use the amount that lands in your bank account. They use your gross taxable income — the amount before tax. If you only know your after-tax pay, this calculator converts it back to the gross figure lenders will assess.

It's especially useful if you're comparing payslips, negotiating a new job, or checking whether your reported income is enough for the loan you want. Once you have your gross annual income, try it in our borrowing power calculator or read our borrowing power guide to see how lenders treat bonuses, overtime and casual income.

How the calculation works

The tool takes your after-tax income, scales it to an annual figure based on your pay frequency, then solves for the gross income that leaves you with that net amount after:

• PAYG income tax at current Australian resident rates
• The 2% Medicare levy (with a simplified low-income reduction)
• Optional HELP/HECS compulsory repayments

Gross income − income tax − Medicare − HELP = net income

Because Australia uses progressive tax brackets, the relationship between gross and net is not a simple percentage. A higher net income pushes more dollars into higher tax brackets, so the gross required rises faster than the net.

Turn your gross income into borrowing power

After you know your gross annual income, the next step is seeing what a lender might let you borrow. Use our borrowing power calculator, check your year-to-date income annualisation if your pay varies, or book a free 15-minute chat with an XLOANS broker to confirm exactly how your income will be assessed.