Interest Rate Rise Calculator
See what a rate rise or cut means for your home loan repayments, per month, fortnight and year.
| Rate change | New rate | Monthly | Change a month |
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Assumes a principal and interest loan with the new rate applying for the rest of the term. Fortnightly figures are worked out over 26 repayments a year.
Printed from ClearCalc (clearcalc.com.au/interest-rate-rise-calculator/). Estimates only, not financial advice.
How much does a rate rise cost?
When the Reserve Bank moves the cash rate, most lenders pass the change on to variable home loans within a few weeks. A 0.25% rise sounds small, but on a big loan it adds up. On a $600,000 loan with 30 years left at 6.0%, a 0.25% rise lifts the monthly repayment from about $3,597 to $3,694, roughly $97 a month or $1,160 a year. A 0.25% cut saves a similar amount.
As a quick rule, each 0.25% move changes repayments by about $16 a month for every $100,000 you owe on a 30-year loan at around 6%.
If rates go up
- Check your budget now. Work out whether you could cope with a rise of 1% or more. Your bank tested you at 3% above your rate when you borrowed, but your costs may have changed since.
- Ask for a better rate. Lenders often give existing customers a higher rate than new ones. A quick call, or a switch using the refinance calculator, can more than cancel out a rate rise.
- Use your offset. Savings in an offset account reduce the interest you're charged.
- Talk to your lender early if you're struggling. Lenders have hardship options, such as a short repayment pause or a longer term.
If rates come down
Many lenders lower your repayment automatically, but some keep it the same unless you ask. If you can afford it, keeping your old repayment is one of the easiest ways to pay off your loan sooner. See how much you'd save with the extra repayments calculator.
Fixed rate loans
If your rate is fixed, changes to the cash rate won't affect you until the fixed term ends. Use this calculator to see what your repayment could be when you roll onto a variable rate, and compare loan sizes on our home loan repayments tables.
Estimate only. Lenders don't always pass on the full cash rate change, and your new repayment depends on your exact balance and remaining term.
Frequently asked questions
How much will a 0.25% rate rise add to my repayments?
On a $600,000 loan over 30 years at 6.0%, about $97 a month, or $1,160 a year. Each $100,000 you owe adds about $16 a month.
How much does a 0.5% rate rise cost?
On a $600,000 loan at 6.0% over 30 years, a rise to 6.5% adds about $195 a month, or around $2,340 a year.
When will my repayments change after a rate rise?
Most lenders change variable rates within a few weeks of a Reserve Bank decision and tell you your new repayment in writing, usually taking effect from your next repayment date or soon after.
Will my repayments drop automatically if rates are cut?
Many lenders lower them automatically, but some keep your repayment the same so you pay the loan off faster. Ask your lender if you'd prefer the lower repayment.
Official sources used for this calculator include: Moneysmart – Home loans, APRA – Australian Prudential Regulation Authority, Housing Australia – Home Guarantee Scheme. See how we calculate.
Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.