Home Loan Offset Calculator – See How Much You Could Save
See how much interest an offset account could save you over the life of your loan, and how many years sooner you could be debt-free. This home loan offset calculator shows the real impact of keeping your savings working against your mortgage.
Want to compare against extra repayments? Try our home loan repayment calculator, or talk to a broker about sharpening your rate.
Calculators
Check your offset account is linked properly
Moneysmart, the federal government's money guidance site, tells borrowers to make sure an offset account is linked correctly through the bank's app, online banking or statements, rather than assuming it is working because it was requested. That advice exists because unlinked offsets happen, and they can run for months before anyone notices. The fix is to compare the interest you were actually charged with what you should have been charged. The Offset Account Checker does that from one statement and writes the letter to the bank if the numbers do not match. Source: Moneysmart, Mortgage offset accounts.
To see how many years an offset takes off your loan, rather than the repayment saving alone, use the Effective Interest Rate Calculator.
Last updated: October 2026
Offset Accounts — Frequently Asked Questions
What is a home loan offset account?
An offset account is a transaction account linked to your home loan. The balance you keep in it is “offset” against your loan balance, so you’re only charged interest on the difference — not the full loan amount.
How much can an offset account really save me?
The savings depend on your loan size, interest rate and how much you keep in the account. Even a modest ongoing balance can cut thousands in interest and shave months or years off your loan. Use the calculator above to model your own numbers. To see exactly how many years your offset takes off the loan, and the interest it saves, run your numbers through the Effective Interest Rate Calculator.
Is an offset account better than making extra repayments?
Both reduce interest, but an offset keeps your money accessible — you can withdraw it any time — whereas extra repayments can be harder to get back without a redraw facility. The right choice depends on your cash-flow needs.
Do offset accounts cost anything?
Some lenders charge a higher rate or an annual package fee for an offset facility. It’s worth checking whether the interest saved outweighs the cost — something a broker can quickly work out for your loan.
Can I have more than one offset account?
Many lenders allow multiple offset accounts against a single loan, which can help you organise savings for different goals while still reducing interest. Availability varies by lender and product.
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Using the offset to build a lump sum you plan to invest? Run it through the debt recycling calculator first. It shows the after-tax cost of borrowing that money back and what happens if the market falls.