Calculator
Offset calculator
An offset account puts your savings to work against your loan without locking them away. This tool models a constant offset balance against a loan and shows the interest and time difference across the life of the scenario.
The effect compounds quietly: interest saved this month means slightly more of next month’s repayment hits the principal, and so on for years. Whether an offset beats other structures for you depends on balances, habits and the loan itself, which is a conversation we have every day on refinancing reviews.
Interest difference in this scenario
$131,594
Time difference
3 yrs 0 mths
Estimates for general guidance only, using simplified assumptions and your inputs. Not advice, not a quote and not a prediction of your actual loan. Lender terms, rates and your circumstances will change the real figures.
Offset questions
How does an offset account work?
Money sitting in an offset account reduces the loan balance that interest is calculated on. $30,000 offset against a $600,000 loan means interest accrues on $570,000, while your money stays accessible.
Is an offset the same as a redraw?
No. Both reduce interest, but an offset is a transaction account sitting beside the loan, while redraw is access to extra repayments already made into the loan. Flexibility, discipline and structure differ; the right fit depends on how you manage money.
Do all loans have offset accounts?
No, and loans with full offset sometimes price differently or carry fees. Whether the feature pays for itself depends on your balances, which is exactly the maths this calculator sketches.
Is this calculator advice?
No. It is a general modelling tool using your inputs and simplified assumptions. Your actual loan, rate and behaviour will differ. Talk to us, or your adviser, before acting.
Is an offset right for your loan?
Bring the numbers, we will bring the honesty. The conversation costs nothing.