Your Repayment, After the Next Decision
Next decision: 11 August 2026, 2:30pm AEST. A full 0.25% move changes repayments on a $600k 30-year loan by roughly $96 a month.
Enter your loan and pick a rate change to see the repayment impact.
The RBA sets the cash rate — the overnight rate banks pay each other. Your variable rate is set by your lender, funded from deposits and wholesale markets as well as the cash rate. That's why pass-through is a decision, not a mechanism: after each RBA move, lenders announce their own changes over the following days and weeks, sometimes for less than the full amount. Two practical consequences: a cut doesn't reach you until your lender moves, and even then most lenders keep your direct debit unchanged unless you ask — the cut shortens your loan instead of freeing up cash flow. A rise, by contrast, is passed through near-universally and lifts your minimum repayment. If your lender consistently keeps part of each cut, the loan calculator shows what the gap costs against the current market over a full term.
The Reserve Bank board's next monetary policy decision is announced on 11 August 2026 at 2:30pm AEST. The RBA meets eight times a year; the remaining scheduled 2026 announcement dates after August are 29 September, 10 November and 22 December. This calculator's displayed cash rate is updated on each decision day.
No. The RBA sets the cash rate; your lender decides whether, when, and by how much to change its own variable rates. Most lenders move variable rates within weeks of a decision, but pass-through can be partial and timing differs between lenders. Fixed-rate loans don't change until the fixed term ends. Even after a variable rate cut, many lenders keep your direct-debit repayment the same unless you ask them to lower it — you pay the loan off faster instead.
On a $600,000 principal-and-interest loan with 30 years remaining at 6.10%, a full 0.25% cut to 5.85% lowers the monthly repayment from about $3,636 to about $3,540 — roughly $96 a month, or about $1,150 a year. The dollar impact scales with your balance: a $300,000 loan moves about half that. Enter your own numbers above for the exact figure.
Lenders fund loans from a mix of deposits and wholesale markets, not just the cash rate, so they sometimes pass on only part of a move — or pass it on with a delay. If your lender consistently under-delivers on cuts, that gap compounds: 0.10% left on the table costs about $37 a month on a $600,000 30-year loan. Comparing your rate against the market after each RBA decision is exactly when lenders expect switching pressure — the loan calculator puts your rate against 7 lenders side by side.
The cash rate target is 4.35%, set on 6 May 2026 and held at the June 2026 meeting. The rate shown at the top of this calculator is refreshed on each RBA decision day, so the figure on the page reflects the latest announcement.