HomeCalculators › Offset Account Calculator

Offset Account Calculator

What your offset balance saves in interest

About this calculator

Money in an offset account is subtracted from the balance you're charged interest on — park $40k and it's as if $40k of your loan isn't charged interest. Keep repayments the same and the interest saved goes to principal, shortening the loan.

Frequently asked

How is an offset different from a savings account?

An offset reduces your loan interest daily — its effective return equals your mortgage rate and is generally tax-free, whereas savings-account interest is taxable income.

Related calculators