RBA Rate Cut Savings Calculator
Calculate how much you'll save from the latest RBA interest rate cut. Updated 20 May 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 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 20 May 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 RBA rate cut announcement (20 May 2025) - from 4.1% to 3.85% on a 30-year loan term. Use the calculator on the left to adjust the loan term.
About the RBA Rate Cut
Latest update (20 May 2025): The Reserve Bank of Australia (RBA) has lowered the cash rate target by 25 basis points to 3.85% at its May 2025 meeting. This decision comes as inflation continues to moderate, with annual trimmed mean inflation at 2.9% and headline inflation at 2.4%, both within the RBA's 2–3% target band. The Board noted that while inflation is easing, the outlook remains uncertain due to global economic volatility and domestic factors.
Read the official RBA media release (20 May 2025)
Impact on Your Mortgage
A rate cut directly affects variable rate mortgages. 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 Outlook and Advice
The RBA Board judged that risks to inflation have become more balanced, with inflation expected to remain around target. However, the Board remains cautious given global uncertainties and will continue to monitor economic data closely. Maintaining low and stable inflation remains the priority.
Making the Most of Rate Cuts
To maximize the benefit of a rate cut, 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