RBA Rate Cut Savings Calculator
Calculate how much you'll save from the previous RBA interest rate cut. Updated 8 July 2025
Rate Cut Savings Calculator
Estimate your savings
Enter your loan amount
| Period | Savings |
|---|---|
| Weekly | $0 |
| Monthly | $0 |
| Yearly | $0 |
| Total savings over loan term | $0 |
Your Savings Breakdown
Monthly Repayment Comparison
Your monthly repayments will decrease by 0%
What if the rate drops further?
If rates drop another 0.25%
$171 monthly savings
If rates drop another 0.50%
$255 monthly savings
If rates drop another 0.75%
$337 monthly savings
For more details, see the latest RBA media release.
Tips to maximize your savings
Keep your repayments the same as before the rate cut to pay off your loan faster
Consider setting up an offset account to reduce your interest charges further
Review your loan terms and compare rates from different lenders
Use your savings to build an emergency fund or make extra repayments
Disclaimer: This calculation assumes monthly payments, covering both principal and interest, with no changes in bank fees. The information provided is general and should not be considered specific financial advice. For personalized advice on loan repayments, please consult your lender. This tool provides estimates only.
Home Loan Savings Reference
Updated 8 July 2025
| Loan Amount | Monthly Savings | Annual Savings |
|---|---|---|
| $100,000 | $14 | $168 |
| $250,000 | $36 | $432 |
| $500,000 | $72 | $864 |
| $750,000 | $108 | $1,296 |
| $1,000,000 | $144 | $1,728 |
| $1,500,000 | $216 | $2,592 |
| $2,000,000 | $288 | $3,456 |
| $2,500,000 | $360 | $4,320 |
| $3,000,000 | $432 | $5,184 |
| $3,500,000 | $504 | $6,048 |
| $4,000,000 | $576 | $6,912 |
*Based on previous RBA rate cut from 4.1% to 3.85% on a 30-year loan term. Current RBA rate unchanged at 3.85% (July 2025). Use the calculator to explore different scenarios.
About the RBA Rate Decision
Latest update (8 July 2025): The Reserve Bank of Australia (RBA) has kept the cash rate target unchanged at 3.85% at its July 2025 meeting. This decision was made by majority (6 in favour, 3 against). While inflation has fallen substantially since its peak in 2022, with underlying inflation at 2.9% in the March quarter, the Board remains cautious about the outlook and is waiting for more information to confirm that inflation remains on track.
Read the official RBA media release (8 July 2025)
Impact on Your Mortgage
This calculator shows the impact of the previous rate cut from 4.10% to 3.85%. When the RBA reduces the cash rate, banks typically pass on some or all of the cut to their customers. This results in:
- Lower monthly repayments
- Reduced interest charges
- Opportunity to pay down principal faster
RBA's Current Outlook
The RBA Board remains focused on delivering price stability and full employment. While inflation has moderated significantly, the Board is cautious about the outlook and is monitoring global economic conditions, domestic demand, inflation, and labour market trends. The RBA has indicated that monetary policy is "well placed to respond decisively" to international developments.
Making the Most of Rate Cuts
To maximize the benefit of rate cuts, consider:
- Maintaining your current repayment amount to pay off your loan faster
- Using the savings to build an emergency fund
- Reviewing your loan terms to ensure you're getting the best deal