Offset Account Calculator
See how much interest and time your mortgage offset account saves.
🇦🇺 Built for Australia
How an offset account works
An offset account is a transaction account linked to your home loan. Every dollar in it is subtracted from your loan balance before interest is calculated. With a $600,000 loan and $30,000 in offset, you are charged interest on $570,000.
Because your repayment stays the same, more of each payment goes to principal and the loan finishes sooner.
Offset vs redraw
| Offset | Redraw | |
|---|---|---|
| Separate account | Yes | No – extra repayments inside the loan |
| Easy access | Yes, like a bank account | Can be limited or charged |
| Investment property later | Keeps interest deductible | Redrawing can reduce deductibility |
Is an offset worth it?
Offset loans often carry a package fee (around $395 a year) or a slightly higher rate. If you keep a meaningful balance, the interest saved usually outweighs the fee.
Frequently asked questions
Is offset interest saving taxed?
No. You are not earning interest, you are paying less, so there is no tax.
Is a 100% offset better than a partial offset?
Yes. A partial offset only reduces interest on part of the balance.
Last updated 15 November 2026. Results are estimates for general information and are not financial, tax, legal or medical advice.
