Offset Account Calculator
See how much interest you'll save
LendAU Mortgage Brokerage
Catherine Jones | 0428 522 123
What's an Offset Account?
An offset account is a transaction account linked to your home loan. The balance in your offset account reduces the amount of interest you pay on your loan.
Example: If you have a $500,000 loan and $50,000 in your offset account, you only pay interest on $450,000. Your money stays accessible while saving you thousands!
Your Home Loan Details
Offset Account Balance
Adjust the slider to see how different balances impact your savings
Balance in Offset Account
$50,000
That's 10% of your loan
Quick Scenarios:
Your Offset Savings
Here's what you'll save with $50,000 in offset
Monthly Savings
$0
Annual Savings
$0
5-Year Savings
$0
Total Interest Saved Over Loan Life
$0
Pay Off Your Loan Faster
Without Offset
25
years to pay off
With Offset
22.5
years to pay off
Time Saved
2.5 years
Own your home sooner!
Loan Payoff Timeline
The Complete Picture
| Without Offset
|
With Offset
|
You Save
|
|
|---|---|---|---|
| Loan Balance | $500,000 | $500,000 | - |
| Interest Charged On | $500,000 | $450,000 | $50,000 |
| Monthly Interest | $2,500 | $2,250 | $250 |
| Total Interest Paid | $500,000 | $425,000 | $75,000 |
| Loan Term | 25 years | 22.5 years | 2.5 years |
Why an Offset Account?
Save on Interest
Every dollar in your offset account reduces the interest you pay
Pay Off Faster
Less interest means more of your payment goes to principal
Keep It Accessible
Unlike extra repayments, your money stays accessible for emergencies
Use As Transaction Account
Pay bills, receive salary - it works like a regular bank account
Tax Effective
Offset savings = interest saved, not taxable interest earned
Flexible
Deposit and withdraw whenever you need without penalties
💡 Smart Offset Strategies
1. Use It As Your Main Account
Have your salary paid into your offset account and pay all bills from it. Even if money only sits there for a few days, you'll save on interest.
2. Park Large Savings
If you're saving for a holiday, car, or other goal, keep that money in your offset account until you need it. It'll work harder there than in a regular savings account (after tax).
3. Emergency Fund Sweet Spot
Keep 3-6 months of expenses in your offset. It's accessible if you need it, but saving you money every single day it sits there.
4. Tax Time Strategy
Expecting a big tax refund? Park it in your offset rather than spending it immediately. Even a few months will save you hundreds in interest.
Want An Offset Account?
Let me find you a home loan with a 100% offset account
Book Your Free Loan ReviewOr call directly: 0428 522 123
✓ Compare offset accounts from 40+ lenders
✓ Find the best rate with offset
✓ Some offset accounts have fees - I'll help you find the right one
Common Questions
Do all loans have offset accounts?
No - offset accounts are typically available on variable rate loans. Some lenders charge a package fee ($300-$400/year). I'll help you find the best option.
Is it 100% offset?
Most Australian lenders offer 100% offset (every $1 offsets $1 of your loan). Always confirm this - some lenders offer partial offset which isn't as good.
Offset vs Extra Repayments?
Offset accounts keep your money accessible. Extra repayments can be harder to redraw. An offset gives you flexibility while still saving on interest.
Can I have multiple offset accounts?
Some lenders allow multiple offset accounts linked to one loan. Great for separating different savings goals while still offsetting your entire balance.
LendAU Mortgage Brokerage
Catherine Jones | Principal Broker
20+ years experience | 696 Bourke Street | Serving all of Australia
📧 catherine@lendau.au | 📱 0428 522 123
This calculator provides estimates only. Actual savings will vary based on your loan balance, interest rate changes, and offset account balance over time. This information is general in nature and does not take into account your personal situation. Not all home loans offer offset accounts - fees and features vary by lender. You should consider whether the information is appropriate to your needs and seek professional advice.
