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Offset account calculator

See what an offset account can save you.

Money sitting in an offset account reduces the loan balance you're charged interest on, without locking it away. Enter your loan and savings details to estimate how much interest you could save, and how much sooner you could own your home.

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What is an offset account?

An offset account is an everyday transaction account linked to your home loan. The balance in it is subtracted from your loan balance before interest is worked out, so with $50,000 in offset against a $600,000 loan, you only pay interest on $550,000. Your repayments stay the same, but more of each one goes to paying down the loan itself.

Unlike making extra repayments, the money stays yours to use whenever you need it. Offset accounts usually come with packaged or variable-rate loans, and some carry an annual fee, so it's worth checking the saving outweighs the cost.

My loan and savings.

$
% p.a.
$
$

What you expect to save into the account on average. Use $0 if the balance stays about the same.

Estimated interest saved

$0

 

  • Monthly repayment (unchanged) $0
  • Interest without an offset $0
  • Interest with your offset $0
  • Interest saved in the first year $0
  • Loan paid off in –
Ask us about offset loans

Estimate only, assuming a constant variable rate, principal & interest repayments and the full offset balance counted against the loan. Excludes account and package fees.

See the savings add up.

See how much interest a $700,000 loan at 6.00% p.a. over 30 years could save with an offset account. Adjust the figures below to match your own savings, and hover any year on the chart for the numbers.

$
$
Without an offset account With an offset account
$0 $10k $20k $30k $40k Yr 1 Yr 5 Yr 10 Yr 15 Yr 20 Yr 25 Yr 30 Year 1 Without offset: $41,766 With offset: $38,514 Interest saved: $3,252 Year 2 Without offset: $41,236 With offset: $37,414 Interest saved: $3,822 Year 3 Without offset: $40,673 With offset: $36,245 Interest saved: $4,428 Year 4 Without offset: $40,075 With offset: $35,004 Interest saved: $5,071 Year 5 Without offset: $39,441 With offset: $33,687 Interest saved: $5,754 Year 6 Without offset: $38,767 With offset: $32,288 Interest saved: $6,479 Year 7 Without offset: $38,052 With offset: $30,803 Interest saved: $7,249 Year 8 Without offset: $37,293 With offset: $29,227 Interest saved: $8,066 Year 9 Without offset: $36,487 With offset: $27,553 Interest saved: $8,934 Year 10 Without offset: $35,631 With offset: $25,777 Interest saved: $9,855 Year 11 Without offset: $34,723 With offset: $23,890 Interest saved: $10,832 Year 12 Without offset: $33,758 With offset: $21,887 Interest saved: $11,871 Year 13 Without offset: $32,734 With offset: $19,761 Interest saved: $12,973 Year 14 Without offset: $31,647 With offset: $17,503 Interest saved: $14,143 Year 15 Without offset: $30,492 With offset: $15,107 Interest saved: $15,385 Year 16 Without offset: $29,267 With offset: $12,562 Interest saved: $16,704 Year 17 Without offset: $27,966 With offset: $9,861 Interest saved: $18,105 Year 18 Without offset: $26,584 With offset: $6,993 Interest saved: $19,592 Year 19 Without offset: $25,118 With offset: $3,948 Interest saved: $21,170 Year 20 Without offset: $23,561 With offset: $850 Interest saved: $22,711 Year 21 Without offset: $21,907 With offset: $0 Interest saved: $21,907 Year 22 Without offset: $20,152 With offset: $0 Interest saved: $20,152 Year 23 Without offset: $18,289 With offset: $0 Interest saved: $18,289 Year 24 Without offset: $16,311 With offset: $0 Interest saved: $16,311 Year 25 Without offset: $14,211 With offset: $0 Interest saved: $14,211 Year 26 Without offset: $11,981 With offset: $0 Interest saved: $11,981 Year 27 Without offset: $9,614 With offset: $0 Interest saved: $9,614 Year 28 Without offset: $7,100 With offset: $0 Interest saved: $7,100 Year 29 Without offset: $4,432 With offset: $0 Interest saved: $4,432 Year 30 Without offset: $1,599 With offset: $0 Interest saved: $1,599
View the year-by-year figures
YearWithout offsetWith offsetInterest saved
1$41,766$38,514$3,252
2$41,236$37,414$3,822
3$40,673$36,245$4,428
4$40,075$35,004$5,071
5$39,441$33,687$5,754
6$38,767$32,288$6,479
7$38,052$30,803$7,249
8$37,293$29,227$8,066
9$36,487$27,553$8,934
10$35,631$25,777$9,855
11$34,723$23,890$10,832
12$33,758$21,887$11,871
13$32,734$19,761$12,973
14$31,647$17,503$14,143
15$30,492$15,107$15,385
16$29,267$12,562$16,704
17$27,966$9,861$18,105
18$26,584$6,993$19,592
19$25,118$3,948$21,170
20$23,561$850$22,711
21$21,907$0$21,907
22$20,152$0$20,152
23$18,289$0$18,289
24$16,311$0$16,311
25$14,211$0$14,211
26$11,981$0$11,981
27$9,614$0$9,614
28$7,100$0$7,100
29$4,432$0$4,432
30$1,599$0$1,599

Important: This calculator provides a general estimate only and does not take into account your personal circumstances or any lender's specific credit policy. It is not a quote, credit assessment or offer of credit. Speak with a Kingdom Capital broker for advice tailored to you.

Steven Joummaa

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