Home loan offset calculator
An offset account holds your savings against your loan, so you pay interest only on the difference. Enter your figures to see how much interest your balance could save, and how much sooner the loan could be paid off.
Your loan & offset
$
The current balance you owe on the loan.
% p.a.
yrs
$
Your everyday savings, sitting against the loan.
$
/mo
Left in the offset, not paid onto the loan, so you keep access to it.
How an offset account works
1
Your savings sit against the loan. An offset is a transaction account linked to your mortgage. The lender charges interest only on the loan balance less the money in the offset.
2
Your repayment does not change. You keep paying the same amount each period. Less of it goes to interest, so more goes onto the principal and the balance falls faster.
3
The money stays yours. Unlike paying extra onto the loan, offset funds are still your everyday savings, and you can withdraw them at any time.
4
The saving builds. Interest you avoid this month means a lower balance next month. Your results above show how many years it takes off.