Home Loan Offset Calculator

What this calculator does

Shows how an offset account cuts the interest on your home loan. Money sitting in the offset is subtracted from your loan balance before interest is worked out, so every dollar in there quietly saves you interest.

Reading the result

Enter your loan and the balance you would keep in the offset. The result is the interest saved and the time shaved off the loan. Even a modest but steady offset balance can save tens of thousands over a 30-year loan.

Example

On a $600,000 loan at 6%, keeping $30,000 in an offset saves roughly $1,800 in interest in the first year alone, and can cut around 1.5 years off a 30-year term if you keep it there.

Frequently asked questions

Offset or redraw – what’s the difference? An offset is a everyday transaction account linked to your loan; redraw is money you have already paid onto the loan and can pull back. Offset is usually more flexible.

Does my whole balance count? Yes, with a 100% offset every dollar counts. Some lenders offer partial offsets, so check the product.

Is an offset worth the fee? If you keep a decent balance, the interest saved usually beats the annual package fee. A broker can run the numbers for your situation.

Not sure which lenders offer a proper offset? See our rankings of the best mortgage brokers in Australia.