RBA Rate Cut Calculator
Estimate a 0.25% RBA rate cut, interest rate reduction or rate drop on your home loan. Compare weekly, monthly and yearly mortgage savings or costs, including the latest RBA rate rise. Updated 5 May 2026Rate Change Impact Calculator
Estimate the impact
Enter your loan amount to see how the rate change affects your repayments
| Period | Additional Cost |
|---|---|
| Weekly | $0 |
| Monthly | $0 |
| Yearly | $0 |
| Total additional cost over loan term | $0 |
Additional Cost Breakdown
Monthly Repayment Comparison
Your monthly repayments will increase by 0%
What if rates change further?
If rates increase another 0.25%
+$89 monthly
If rates drop 0.25%
$88 monthly savings
If rates drop 0.50%
$174 monthly savings
For more details, see the latest RBA media release.
Tips to manage higher rates
Review your household budget to accommodate the higher repayments
Consider using an offset account to reduce your interest charges
Compare rates from different lenders - refinancing could help reduce costs
Speak to your bank about hardship options if you're struggling with 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 Impact Reference
Updated 5 May 2026
| Loan Amount | Monthly Additional Cost | Annual Additional Cost |
|---|---|---|
| $100,000 | +$15 | +$180 |
| $250,000 | +$37 | +$444 |
| $500,000 | +$73 | +$876 |
| $750,000 | +$110 | +$1,320 |
| $1,000,000 | +$146 | +$1,752 |
| $1,500,000 | +$219 | +$2,628 |
| $2,000,000 | +$292 | +$3,504 |
| $2,500,000 | +$365 | +$4,380 |
| $3,000,000 | +$438 | +$5,256 |
| $3,500,000 | +$511 | +$6,132 |
| $4,000,000 | +$585 | +$7,020 |
*Based on latest RBA rate increase from 4.1% to 4.35% on a 30-year loan term. Current RBA rate: 4.35% (increased by 0.25% on 5 May 2026). Use the calculator to explore different scenarios.
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☕Support us on Ko-fiAbout the RBA Rate Cut Calculator
Use this RBA rate cut calculator to estimate how an interest rate reduction or rate drop could change your home loan repayments. The calculator also works for rate rises, so you can compare weekly, monthly and yearly mortgage savings or additional costs from any cash-rate scenario.
Latest update (5 May 2026): The Reserve Bank of Australia (RBA) raised the cash rate target by 25 basis points to 4.35% at its May 2026 meeting. The Board noted that inflation picked up materially in the second half of 2025, fuel and related commodity prices had risen sharply because of the Middle East conflict, and some firms facing cost pressures were looking to increase prices. The decision, passed by majority (8-1), said inflation risks remain tilted to the upside, including for inflation expectations.
Read the official RBA media release (5 May 2026)
Impact on Your Mortgage
This calculator starts with the latest rate increase from 4.10% to 4.35%. You can change the new rate to test a 0.25% RBA rate cut, 0.50% rate cut or any other interest rate reduction. When banks pass rate changes to customers, this can result in:
- Lower monthly repayments after a rate cut
- Higher monthly repayments after a rate rise
- Changed interest charges over the life of the loan
- A clearer household budget for your next payment cycle
RBA's Current Outlook
The RBA Board remains focused on delivering price stability and full employment. The Board assessed that inflation is likely to remain above target for some time, with heightened uncertainty around domestic activity, inflation and global market conditions. It will continue to monitor economic data and adjust policy as needed to bring inflation back to target.
Managing Higher Rates
To manage the impact of rate increases, consider:
- Reviewing your household budget to accommodate higher repayments
- Building a buffer in your offset account to reduce interest
- Comparing rates from other lenders - refinancing could help
- Speaking to your bank about hardship options if needed