✅ Fact checked
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🗓️ Updated: April 2026
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✍️ FinSight Editorial Team
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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.