Home loan offset calculator

Estimate how much you could save with an Offset account

Looking to get the most out of your home loan? Our Home Loan Offset Calculator is a handy tool that shows you how much interest you can save by using an offset account alongside your mortgage. It’s quick, easy to use, and can help you make smarter financial decisions when it comes to managing your home loan.

What is an Offset account? 

An offset account is a transaction or savings account that’s linked to your home loan. Instead of earning interest on the money in this account, the balance is offset daily against your mortgage. This means you’re only charged interest on the difference between your loan balance and the offset account balance — helping you reduce your interest costs and potentially pay off your loan faster.

For example, if your loan balance is $400,000 and you have $50,000 in your offset account, you’ll only be charged interest on $350,000.

So follow the steps below to estimate your potential savings and see the long-term benefits of having an offset account:

• Start by entering the key information about your home loan: Total loan amount, Interest rate, Loan term and Repayment frequency (weekly/fortnightly/monthly).
• Next, provide an estimate of how much money you’ll have in your offset account: This is the amount you expect to keep in your offset account on average. The higher your balance, the more you can potentially save on interest.

Once your details are entered, the calculator will show you: 

• Interest Saved With Offset – the estimated amount you could save by maintaining an offset account.
• New Estimated Loan Term (if applicable) – if you’re making additional repayments or have a high offset balance, you may also reduce the length of your loan.

Want to see how saving a little more each month could impact your loan? Try adjusting your offset balance or loan term to explore different outcomes. You can use this tool as often as you like to plan and compare various repayment strategies.