Mortgage Offset Benefit Calculator
Calculate how much you can save with an offset account on your mortgage. See interest savings and time reduction on your home loan.
A mortgage offset account is a transaction account linked to your home loan. The balance in the offset account reduces the principal on which you pay interest. For example, if you have a $400,000 mortgage and $50,000 in your offset account, you only pay interest on $350,000.
Calculator
Common use cases
- Evaluating whether to open an offset account
- Comparing offset vs redraw facilities
- Planning savings strategy with your mortgage
- Understanding the value of keeping money in offset vs investing
How to use
- Enter your total mortgage loan amount
- Input the current or planned offset account balance
- Enter your mortgage interest rate
- Specify the remaining loan term
- See your potential interest savings
FAQ
How does an offset account work?
Money in your offset account reduces the loan balance that interest is calculated on. If you have $50,000 in offset on a $400,000 loan, you pay interest on $350,000.
Is an offset account worth it?
Offset accounts are valuable if you maintain a significant balance. The interest savings often exceed what you'd earn in a regular savings account, especially in high-rate environments.
100% offset vs partial offset?
A 100% offset account reduces interest dollar-for-dollar. Partial offset accounts only count a portion of your balance against the loan.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.