Mortgage calculator: how much will this rate cut lower your repayments?

The Reserve Bank has cut the official interest rate for the third time this year, delivering 0.25 percentage points of relief for mortgage holders in its August meeting after cuts in February and May.

The RBA cut the cash rate to 3.6 per cent – the lowest rate in more than two years – in a move that comes a month after the Reserve kept rates on hold despite it being anticipated by all markets and major banks.

Commercial banks make their own decisions about whether to pass on rate cuts to their mortgage rates. Our interest rate calculator below allows you to gauge how much money you would save from a rate cut.

Enter your loan amount, the length of your loan, and your existing interest rate, then select the interest rate change you expect to get your new monthly repayment.

Calculations are based on monthly fixed interest rate increases on the principal loan amount, excluding requisite monthly repayments, adjustments to repayment amounts, or additional repayment instalments.

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.