Mortgage calculator
What could an offset account save?
Compare estimated interest using an average linked-savings balance.
Offset mortgages explained
Linked savings reduce the loan balance charged interest. Your savings stay in the linked account. Use an average balance and compare the offset rate with your alternative rate.
Example and common question
Illustrative example: A $100,000 offset loan at 7% with $30,000 average linked savings avoids about $2,100 of annual interest. If those savings could earn 2% after tax, $600 of savings interest is forgone. Fees and changing balances affect the result.
Does offset always beat fixing?
No. A higher offset rate can outweigh the savings benefit. Compare the net difference with a fixed alternative and check your lender’s account rules.
Annual interest avoided by offset
—Compared with the same offset-rate loan without linked savings.
Size the offset portion carefully
An offset rate can be higher than a fixed rate. Your average savings balance matters more than a one-off balance. Savings interest and lender fees can change the comparison.
How this estimate works
Illustrative annual interest with constant loan and average savings balances. Offset savings are capped at the loan portion. Annual interest avoided = eligible savings × offset rate. Savings interest forgone uses your after-tax savings rate and only the savings allocated to offset.
The fixed alternative assumes those savings earn the entered after-tax rate instead of offsetting the loan. A positive difference means offset costs less under these assumptions; a negative difference means it costs more. Repayment amortisation, daily balance changes, fees and future rates are not modelled. Lender eligibility and linked-account rules apply.
Estimates only. Not personalised financial advice or lending approval. Your lender's calculation and eligibility criteria may differ. Our disclosure statement.