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Offset Account Calculator
Free offset account calculator: how much interest and time an offset account saves on your home loan, with your current balance and monthly savings added to the offset.
Your home loan and offset
Interest you save
$287,970
| Monthly repayment (stays the same) | $3,597.30 |
| Interest without offset | $695,029 |
| Interest with offset | $407,059 |
| Loan paid off in | 23 yrs 4 mo |
| Time saved | 6 yrs 8 mo |
| Interest saved in the first year | $2,018 |
An offset account is a transaction account linked to your home loan: interest is charged on the loan balance minus the offset balance. Saving interest at your loan rate is tax-free, unlike interest from a savings account. Offset accounts often come with a fee or a slightly higher rate, so check it's worth it for your balance.
Principal and interest loan, interest worked out monthly, same rate for the whole loan; the offset money stays in. Not legal, tax or financial advice. 🔒 Everything stays on your device.
📚 Official sources: Moneysmart: home loans
We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.
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Questions people ask
How does an offset account work?+
Money in the offset reduces the loan balance you're charged interest on. $50,000 in offset on a $600,000 loan means interest on $550,000.
Is an offset better than a savings account?+
Often, if your loan rate is higher than the after-tax savings rate: offset savings aren't taxed.