Offset Account Calculator Australia — How Much Will You Save?

💰 Your Offset Account Savings
Total interest saved over the loan term
Years saved off loan
Monthly interest saving
Without offset — total interest paid
With offset — total interest paid
Without offset — loan paid off
With offset — loan paid off
Fact checked | 🗓️ Updated: April 2026 | ✍️ FinSight Editorial Team | Free to use — no signup required
Mortgage Tool

Offset Account Calculator

See how much interest and time an offset account saves over the life of your mortgage.

💰 Your Offset Account Savings
Total interest saved over the loan term
Years saved off loan
Monthly interest saving
Without offset — total interest paid
With offset — total interest paid
Without offset — loan paid off
With offset — loan paid off

How Offset Accounts Work

An offset account is a transaction or savings account linked to your home loan. The balance in the account is “offset” against your loan balance before interest is calculated each day. So if you owe $500,000 and have $60,000 in your offset account, you only pay interest on $440,000.

Offset accounts are particularly powerful when you keep your salary, savings, and any extra funds in them. Unlike making extra repayments, the money remains accessible — you can withdraw it any time. This makes it both a savings strategy and an emergency fund simultaneously.

Frequently Asked Questions

How does a mortgage offset account work in Australia?

Every dollar in your offset account reduces the balance your mortgage interest is calculated on. With $50,000 in offset against a $500,000 loan, you pay interest on $450,000 only — saving thousands annually.

Is an offset account worth it in Australia?

Generally yes if you keep a meaningful balance in it. A $50,000 offset at 6% saves $3,000/year in interest — far more than the typical $10-20/month account fee.

What is the difference between an offset account and redraw?

An offset account reduces interest daily and funds remain accessible anytime. Redraw lets you access extra repayments made but the lender controls access and may charge fees. Offset is generally more flexible.