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Rate cut calculator
What a cut or a hike in the central bank's rate does to your loan payment and your savings interest. Slide the change, or pick a bank to use what its odds say.
Assumes the whole change reaches your loan and savings rates at once. Fixed-rate loans do not change until they are renewed, and lenders and banks often pass on less, or later. Figures are in your loan's own currency. The bank buttons use the odds on this site, which come from the record of past decisions, not from markets.
How a central bank's rate reaches you
The central bank sets the rate at which banks borrow overnight. A lender's variable and tracker rates are priced off it, so a cut of a quarter point usually lowers them by about a quarter point within a month or two. Savings rates follow too, usually by less and later.
Fixed rates work differently. They are priced off what markets expect the central bank to do over the fixed term, so they often fall before a cut and barely move on the day. If your mortgage is fixed, the calculator shows what changes when you refinance.
As an example from the calculator's own arithmetic: 300,000 borrowed at 6.5% with 25 years left costs 2,026 a month. A quarter-point cut passed on in full takes it to 1,979, about 47 less a month.
What each bank's odds average to
| Bank | Rate now | Next meeting | Within a year |
|---|---|---|---|
| Fed USD | 3.75%–4.00% | +9 bp | +49 bp |
| ECB EUR | 2.50% | +6 bp | +19 bp |
| BoE GBP | 3.75% | +23 bp | +96 bp |
| BoJ JPY | 1.25% | +6 bp | +36 bp |
| BoC CAD | 2.50% | +15 bp | +68 bp |
| RBA AUD | 4.85% | +17 bp | +78 bp |
| RBNZ NZD | 2.75% | +4 bp | +18 bp |
| SNB CHF | 0.00% | −1 bp | −4 bp |
| Norges Bank NOK | 4.50% | 0 bp | +8 bp |
| Riksbank SEK | 1.75% | +23 bp | +37 bp |
Averages over the rate odds as of Nov 3, 2026, 8:20 AM UTC. Not a forecast of any lender's rates.
Rate cuts and your money: questions
How much does a 0.25% rate cut save on a mortgage?
On a variable-rate loan of 300,000 at 6.5% with 25 years left, a cut of 0.25 percentage points passed on in full lowers the monthly payment by about 47, or 564 a year. Use the calculator for your own figures.
Does a central bank rate cut lower my mortgage straight away?
Only a variable or tracker rate moves with it, usually within a month or two. A fixed rate stays the same until the fixed term ends, though new fixed rates often fall before the bank cuts, as lenders price in what they expect.
What does a rate cut do to my savings?
Banks usually lower savings rates after a cut, often by less and later than they lower loan rates. Fixed-term savings keep their rate until they mature.
Where do the bank figures come from?
From this site's rate odds: the chance of a cut, hold or hike at each meeting, worked out from every decision since 2008. The calculator takes their average. They come from the record, not from markets, and are not a forecast of what any lender will do.
Put this calculator on your own site: it is a free widget.
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