Home Loan Offset Calculator
Estimate how a mortgage offset account could reduce interest and shorten your home loan with the same monthly repayment.
Example estimate
Estimated interest saved
$121,082
- Regular monthly repayment
- $3,865.81/mo
- Estimated time to pay off loan
- 22 years 5 months
- Time saved
- 2 years 7 months
- Interest with your changes
- $438,661
- Interest on the original loan
- $559,743
This estimate uses the figures shown. For financial product decisions, consider advice from a licensed financial services provider.
How this estimate works
The offset is fixed and fully linked to the mortgage. The model compares monthly interest with and without the offset while keeping repayments unchanged. Daily interest, changing balances, partial offsets and extra account fees can change the benefit.
Example amounts illustrate the calculation. Replace them with your own figures or quotes.
How does an offset account save interest?
A full offset account reduces the loan balance on which interest is charged. With a $500,000 loan and $30,000 in offset, interest is charged on $470,000. Keeping the same repayment directs more money to principal.