Offset account calculator
See exactly how much an offset account saves — the interest you avoid each year, the total over the life of the loan, and the years it knocks off.
Your offset saving
The calculation stays in your browser. Email is optional — we'll send this and your launch invite.
How much does an offset account save?
Every dollar sitting in an offset account is subtracted from your loan balance before interest is charged — so it earns you your mortgage rate, guaranteed and effectively tax-free. On a $600,000 loan at 6.09% with $40,000 in offset, that's about $2,436 saved in the first year, roughly $173,071 over the life of the loan, and 3 yrs 11 mo off the term if you keep the same repayment.
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.
Offset FAQ
How much does an offset save?
About $2,436 a year on a $600k loan at 6.09% with $40k offset — and ~$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.
Estimate only — general information, not advice.