Calculators / Offset
What your offset account is really worth.
Every dollar in the offset is a dollar the bank stops charging interest on1 — here’s the interest saved, and how much sooner the loan clears.
$
$
%
yrs
Assumes the offset balance stays put and the repayment is unchanged. Estimate only, not advice.
Interest saved per year
$2,436
about $203/month, tax-free
Interest charged on$560,000
Total interest saved$173,071
Loan cleared earlier by3 yrs 11 mo
Like a pre-tax return of8.70%
- 1 Annual saving = min(offset, loan) × rate. Tax-equivalent return assumes a 30% marginal rate. Estimate only.
Offset vs savings account
A savings account paying 5% is taxed. At a 30% marginal rate that's really ~3.5% after tax. An offset "returns" your full mortgage rate with no tax, which is why it usually wins for anyone with a home loan.
Common questions
How much does an offset save?+
About $2,436 a year on a $600k loan at 6.09% with $40k offset, and about $173,071 over the loan. Enter your own numbers above.
Is an offset better than a redraw?+
They save the same interest, but offset funds stay in your own account (more flexible and clearly yours); redraw sits inside the loan and can be restricted by the lender.
Official sources