Offset Calculator
Offset Calculator: Interest and Time an Offset Could Save
Enter your loan, rate and offset balance to estimate how much interest an offset account could save and how much sooner the loan could be repaid, if your repayments stay the same.
Your offset savings
Assumes a 100% offset, principal and interest repayments, and a rate that doesn’t change.
Enter your loan balance, rate and offset balance to see an estimate.
Results are estimates only, based on the figures you enter, monthly repayments and a rate that stays the same. They don’t include fees, and they aren’t a quote, an approval or a loan offer. They don’t consider your objectives, financial situation or needs. Offset features, fees and rates vary by lender. Lending criteria apply.
How it works
Interest on the loan, less the offset.
Each month, interest is worked out on your loan balance minus the money in your offset. Your repayment doesn’t change, so the interest you don’t pay comes off the principal instead. That is why an offset can shorten the loan as well as cut interest.
An example
On a $500,000 loan at 6% over 30 years, repayments are about $2,998 a month. Keeping $50,000 in a 100% offset the whole time would save about $194,600 of interest and repay the loan 5 years and 4 months sooner, if the rate and the offset balance stayed the same. Real balances move up and down, so treat any figure as a guide. This example uses a sample rate for illustration only, not an advertised rate or an offer.
Offset or extra repayments?
Both reduce the interest you pay. An offset keeps the money in your own account, which can suit savings you may need. Extra repayments go into the loan and may need a redraw to get back. Read our offset account guide for the trade-offs.
Weighing a new loan with an offset? Try the refinance calculator or see variable rates by lender.
Questions
Common questions, straight answers.
How does an offset account save interest?
The balance in a 100% offset account is subtracted from your loan balance before interest is worked out. If your offset holds a tenth of your loan balance, you pay interest on the other nine tenths, while your repayment stays the same, so more of it goes to the principal.
Is an offset better than paying extra into my loan?
They can save similar interest. Money in an offset stays in your account and is easy to reach, while extra repayments may need a redraw. Offset loans can carry a higher rate or a package fee, so the comparison depends on the loan.
Do all home loans have an offset?
No. Many basic variable loans don’t, and some fixed loans offer a partial offset or none. Each lender sets its own rules, including how many offset accounts you can link.
Want to see how an offset fits your loan?
No obligation. No pressure. Just honest answers.
We don’t charge you for our service. Lenders pay us a commission if you go ahead with a loan.