Offset Account Calculator

What this calculator can help you estimate

This calculator compares a home loan with and without an average offset balance. It estimates your effective interest-bearing balance, potential interest saving and how much sooner the loan could be repaid.

The result is a guide only. Your actual outcome will depend on daily account balances, repayment timing, rate changes, fees and lender rules.

How an offset account works

An offset account is a transaction account linked to an eligible home loan. Its balance is generally offset against the loan balance when interest is calculated.

For example, a $500,000 loan with $50,000 held in a full offset account may be charged interest on an effective balance of $450,000 while the money remains available in the account.

Offset account versus redraw

Both features may reduce interest, but they work differently. An offset account keeps your money in a separate transaction account. Redraw lets you access eligible extra repayments already made to the loan, subject to lender rules.

Access, fees and tax considerations can differ, so the right structure depends on how you plan to use the property and your money.

Why fees, rates and account features matter

An offset feature may come with package fees, account fees or a different interest rate. Some loans offer a partial offset rather than a full offset.

Compare the likely interest benefit with the total cost of the loan and confirm which accounts are linked before deciding whether the feature offers value.

When to speak with a broker

A broker can help if you are comparing offset and redraw, reviewing loan fees and rates, refinancing, or deciding how to structure lending for a home or investment property.