Offset Account Calculator
See how much mortgage interest you can save by keeping savings in an offset account linked to your loan.
Mortgage Details
Offset Account
Offset ratio: 10.00% of your mortgage balance
The more you hold in offset, the more interest you save. Even $10k makes a difference!
Monthly Interest Comparison
Monthly Savings
$271
1000.00% less interest
Annual Savings
$3,250
This calculator provides estimates for general information purposes only. Results are not financial, tax or legal advice and do not take into account your personal circumstances. Always consult a licensed professional before making any financial decisions.
Savings Over Time
Total Savings (Mortgage Term)
$97,500
Over 30 years
Mortgage Interest Reduction
1000.00%
Less interest you'll pay overall
How Offset Accounts Work
1. Link your savings: Your offset account balance is held separately but linked to your mortgage.
2. Offset your interest: The bank calculates your mortgage interest on (Mortgage Balance − Offset Balance). You don't earn interest on the offset funds, but you save it by paying less mortgage interest.
3. Stay flexible: You can withdraw from the offset account anytime — it's your money, not tied up in the mortgage.
Example: Mortgage $500k @ 6.5%, Offset $50k = You only pay interest on $450k. That's $271/month saved.
By keeping $$50,000 in offset, you'll save approximately $$3,250 per year in mortgage interest. Over your 30-year mortgage, that's $$97,500 — no tax, no conditions, pure savings.
⚠️Estimate only. This assumes a fixed interest rate and constant offset balance. In reality, rates change, and you may add or withdraw from the offset account. Always check the fine print of your offset account — some charge fees, some have minimum balance requirements, and some may not offset 100% dollar-for-dollar. Consult your bank or mortgage broker for exact terms.
Frequently Asked Questions
Want to refinance to a loan with offset?
Our partner brokers can find you a loan with a 100% offset account at a competitive rate — free comparison service.
Next step: calculate extra repayment savings
Compare offset account savings with extra mortgage repayments.