Mortgage Offset Calculator
See how your offset account balance reduces interest and shortens your loan.
Loan Details
$
$600,000
%
Offset Account
$
$50,000
$
How much extra you add to your offset each month
Total Interest Saved
$486,478
Time Saved
11 years 3 months
earlier payoff
Total Interest Without Offset
$695,029
Total Interest With Offset
$208,551
Interest Comparison
Without offset$695,029
With offset$208,551
You save: $486,478
Year-by-Year Snapshot
| Year | Balance (No Offset) | Balance (With Offset) | Offset Balance | Interest Saved |
|---|---|---|---|---|
| 1 | $592,632 | $588,877 | $74,000 | $3,755 |
| 2 | $584,809 | $575,588 | $98,000 | $9,222 |
| 3 | $576,504 | $559,998 | $122,000 | $16,506 |
| 5 | $558,326 | $521,344 | $170,000 | $36,983 |
| 10 | $502,114 | $373,386 | $290,000 | $128,729 |
| 15 | $426,293 | $161,037 | $410,000 | $265,257 |
| 20 | $324,022 | $0 | $530,000 | $378,823 |
| 25 | $186,073 | $0 | $650,000 | $456,712 |
| 30 | $0 | $0 | $770,000 | $486,478 |
Assumptions
- •Principal & interest repayments with a fixed interest rate of 6.0% for the entire loan term.
- •The offset account balance grows by a constant $2,000 per month. In practice, offset balances fluctuate with spending and income.
- •Monthly repayment stays constant at $3,597 (based on the no-offset scenario). With offset, more of each repayment goes to principal.
- •This does not account for offset account fees, rate changes, or redraw facility differences.
This is a simplified estimate. Your actual savings will vary based on spending patterns, income timing, and rate changes. Consult your lender or mortgage broker for personalised advice.