Should I fix my rate right now?

It depends on your risk tolerance and market outlook. If you prefer certainty in your budget and believe rates may rise, fixing can provide peace of mind. If you want flexibility or believe rates may fall, variable may be better.

What are break costs?

Break costs apply when you exit a fixed rate early (by selling, refinancing, or paying off the loan). They can be substantial - sometimes tens of thousands of dollars - as banks calculate the cost of you breaking the contract.

Can I make extra repayments on a fixed rate?

Most fixed rate loans allow $10,000-$20,000 per year in extra repayments without penalty. Exceeding this triggers the extra repayment limit and may attract break costs.

§ Tool · tier 1 · independent

Fixed vs Variable Calculator.

Compare fixed and variable rate options to find the best choice for your situation

CalculatorFree, no signupOn-deviceupd May 2026

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Choosing between fixed and variable rates is one of the biggest decisions when getting a home loan. Fixed rates offer certainty but less flexibility. Variable rates can move up or down but allow extra repayments without penalty. Our calculator helps you compare both options.

§ Worked examples

Real-world scenarios

First Home Buyer Wanting Certainty

Amit has a $520,000 loan and is offered 5.9% fixed for 2 years vs 6.4% variable.

Inputs

loanAmount:520,000loanTerm:30fixedRate:5.9fixedTerm:2variableRate:6.4

Fixed saves $130/month for 2 years ($3,120 total). If Amit sells within 2 years, break costs typically exceed these savings.

Investor with Flexibility Needs

Chen has a $680,000 investment loan. Fixed is 6.2%, variable is 6.5%. Plans extra repayments.

Inputs

loanAmount:680,000loanTerm:30fixedRate:6.2fixedTerm:3variableRate:6.5

Fixed saves $1,020/year, but Chen's $20,000/year extra repayments can only go to variable. Consider a split loan.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Fixed Rate

An interest rate that stays the same for a set period (1-5 years), regardless of market changes.

Variable Rate

An interest rate that can change at any time based on market conditions and lender decisions.

Break Cost

The penalty charged for exiting a fixed rate early. Calculated based on the bank's cost to break the contract.

Revert Rate

The rate your loan moves to after the fixed period ends. Often higher than advertised variable rates.

§ Pair it with

Related tools

Explore Split Loan Options

Get the best of both worlds by splitting fixed and variable.

Compare Live Rates

See current fixed and variable rates from across the market.

Negotiate Your Rate

Get tips on negotiating a better rate with your lender.

How to use

01Enter your loan amount and term
02Input the fixed rate and term being offered
03Enter the current variable rate
04Compare monthly payments and total costs
05See break-even scenarios

Key info

Fixed rates protect you from rate rises during the fixed period
Variable rates allow unlimited extra repayments
Fixed rate break costs can be significant if you sell or refinance
Many borrowers split their loan between fixed and variable

Pro tips

Look at the gap between fixed and variable rates - if fixed is much lower, markets expect rates to fall
Consider your time horizon - if you might sell within 2-3 years, break costs could outweigh fixed rate savings
Shorter fixed terms (1-2 years) reduce commitment while still providing some certainty
Negotiate the variable rate after fixing - lenders often have room to move on their revert rate

Avoid these

Fixing without understanding break costs - selling or refinancing early can cost thousands
Not considering what happens when the fixed period ends - the 'revert rate' is often high
Fixing 100% of the loan and losing all flexibility for extra repayments
Choosing based solely on today's rates without considering your personal circumstances

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026