AUSTRALIA · HOME LOAN OFFSET ACCOUNT
Home Loan Offset Account Savings Calculator
A genuine 100% offset account reduces the home-loan balance charged interest. See whether keeping savings alongside your loan could save more than the package fee.
Enter your figures
Figures are calculated in this browser; entered personal amounts are not required to be sent to our servers.
Calculation results
Estimate only. A bank, employer, tax office or lender may apply additional conditions. See the scope and source below.
When and how to use this calculator
An Australian A$750,000 home loan with A$50,000 held in a genuine 100% offset at a constant 6% rate saves about A$3,000 of simple annual interest before fees, provided those balances stay unchanged.
- Enter the outstanding loan principal, not the purchase price of your property.
- Use an average offset balance you expect to maintain throughout the year, including after salaries and bills fluctuate.
- Add any EXTRA annual account or home-loan package fee caused by keeping offset access. Compare against savings and ask whether the loan rate is higher than a no-offset alternative.
Understand your result
Assumes 100% offset, unchanged loan and offset balance and fixed interest rate for 365 days. Ignores actual bank daily balance patterns, annual/loan fees beyond the entered amount, interest compounding, account-package rate premiums and tax.
Questions people ask
Does an offset balance pay interest like a savings account?
No. A genuine mortgage offset reduces the loan balance used to compute mortgage interest; it generally does not pay separate savings interest.
Will this calculate my exact earlier mortgage payoff?
No. This is a fixed-balance simple-interest illustration, not an amortisation schedule.
What if my offset account has more than the loan balance?
Savings are capped at the loan balance in this model. Exceeding it does not earn extra negative interest.
Reference and calculation scope
Source material is provided for independent checking. Our calculator is not a government or bank service.