Free Home Loan Offset Calculator
See how much an offset account could actually save you
Enter your loan balance and offset account balance to see an estimate of the interest and time you could save over the life of your loan.
With 23+ years in financial services, I help clients decide whether an offset account, extra repayments, or both, best suits their situation.
Prefer to talk first? Call Durand direct on 0450 275 656
Run your numbers
Enter your loan amount, interest rate, term and the balance you’d keep in an offset account to see the estimated savings. It takes less than a minute.
This estimate assumes your offset balance stays consistent over time. In practice, most offset balances fluctuate, which will change your actual savings.
What actually determines your offset savings
Three moving parts sit behind every offset savings figure. Understanding them helps you read the calculator’s result the right way.
Offset balance
The more you keep in your offset account, the more interest you avoid, since interest is only charged on your loan balance minus your offset balance.
How consistent the balance is
A balance that grows and shrinks throughout the month still helps, but a consistently higher balance delivers a bigger saving over time.
Your interest rate
A higher interest rate means each dollar sitting in your offset account is doing more work to reduce the interest you’d otherwise pay.
100% offset vs partial offset
Not all offset accounts offset the full balance against your loan. It’s worth confirming which type of account you actually have.
Offset balance
The more you keep in your offset account, the more interest you avoid, since interest is only charged on your loan balance minus your offset balance.
How consistent the balance is
A balance that grows and shrinks throughout the month still helps, but a consistently higher balance delivers a bigger saving over time.
Your interest rate
A higher interest rate means each dollar sitting in your offset account is doing more work to reduce the interest you’d otherwise pay.
100% offset vs partial offset
Not all offset accounts offset the full balance against your loan. It’s worth confirming which type of account you actually have.
Why your real offset savings can differ from the estimate
A calculator assumes a steady offset balance. Everyday banking is rarely that constant.
Your balance moves throughout the month
Salary deposits, bill payments and everyday spending mean your offset balance rarely sits still, which changes your actual saving from month to month.
Not every offset account is a full offset
Some products offer a partial offset, meaning only a percentage of your balance reduces the interest charged, rather than the full amount.
Offset accounts often come with a rate or fee trade-off
Loans with a genuine offset feature sometimes carry a slightly higher rate or an annual fee, which needs to be weighed against the saving.
It’s one part of a bigger structure decision
Whether an offset account beats extra repayments, or works best alongside them, depends on your income pattern and how much flexibility you need.
Your balance moves throughout the month
Salary deposits, bill payments and everyday spending mean your offset balance rarely sits still, which changes your actual saving from month to month.
Not every offset account is a full offset
Some products offer a partial offset, meaning only a percentage of your balance reduces the interest charged, rather than the full amount.
Offset accounts often come with a rate or fee trade-off
Loans with a genuine offset feature sometimes carry a slightly higher rate or an annual fee, which needs to be weighed against the saving.
It’s one part of a bigger structure decision
Whether an offset account beats extra repayments, or works best alongside them, depends on your income pattern and how much flexibility you need.
Your balance moves throughout the month
Salary deposits, bill payments and everyday spending mean your offset balance rarely sits still, which changes your actual saving from month to month.
Not every offset account is a full offset
Some products offer a partial offset, meaning only a percentage of your balance reduces the interest charged, rather than the full amount.
Offset accounts often come with a rate or fee trade-off
Loans with a genuine offset feature sometimes carry a slightly higher rate or an annual fee, which needs to be weighed against the saving.
It’s one part of a bigger structure decision
Whether an offset account beats extra repayments, or works best alongside them, depends on your income pattern and how much flexibility you need.
Your balance moves throughout the month
Salary deposits, bill payments and everyday spending mean your offset balance rarely sits still, which changes your actual saving from month to month.
Not every offset account is a full offset
Some products offer a partial offset, meaning only a percentage of your balance reduces the interest charged, rather than the full amount.
Offset accounts often come with a rate or fee trade-off
Loans with a genuine offset feature sometimes carry a slightly higher rate or an annual fee, which needs to be weighed against the saving.
It’s one part of a bigger structure decision
Whether an offset account beats extra repayments, or works best alongside them, depends on your income pattern and how much flexibility you need.
From estimate to strategy in five steps
Once you’ve run the numbers, here’s what working with Durand actually looks like.
Why clients work with me
The calculators are free for anyone to use. What sets the outcome apart is the strategy built around your actual numbers, delivered by the same person from start to finish.
“Durand was amazing, he walked us through the process every step of the way, always available to explain things, prepared very thorough loan applications, professional, friendly with great communication skills.”
Shane, verified Google review
23+
Years in financial services
70+
Lenders on panel
5★
Client feedback
1:1
End-to-end service, no handoffs
Home loan offset calculator FAQs
How does an offset account actually save me money?
Interest on your home loan is calculated on your loan balance minus your offset balance, so the more you hold in offset, the less interest you’re charged, without reducing your loan balance directly.
Is my offset account a 100% offset?
Most loans marketed with genuine offset features are 100% offset, but some introductory or basic loan products offer only a partial offset. It’s worth checking your specific loan terms.
Does money in my offset account reduce my required repayment?
Generally no. Your minimum repayment is usually still based on your original loan balance, with the offset saving showing up as extra reduction in your loan principal over time.
Is an offset account better than making extra repayments?
It depends on your situation. An offset account keeps your funds accessible, while extra repayments reduce your balance directly and permanently. Many clients use a combination of both.
Does my everyday spending affect my offset savings?
Yes. Since interest is typically calculated daily, a balance that dips throughout the month before your next pay reduces the saving compared to keeping funds parked consistently.
I've run the numbers, what's next?
A conversation about whether your current loan actually has a genuine offset feature, and how it fits alongside your broader repayment strategy.
Related reading
Once you’ve run your numbers, these might be useful next.
Offset vs redraw
A closer look at two different ways to reduce the interest you pay, so you can see which suits your situation.
11 strategies to help pay off your mortgage sooner
More practical ways to reduce your loan term and total interest, beyond what an offset account alone can do.
Offset vs redraw
A closer look at two different ways to reduce the interest you pay, so you can see which suits your situation.
11 strategies to help pay off your mortgage sooner
More practical ways to reduce your loan term and total interest, beyond what an offset account alone can do.
Explore our other calculators
This is one of six free tools. Here are the other five.
Loan repayment
Borrowing power
Stamp duty calculator
Refinance calculator
Extra repayments calculator
Ready to turn your estimate into a strategy?
Tell us what you’re working toward and we’ll review your actual numbers, not just a calculator estimate.
Prefer to talk now? Call 0450 275 656 or email durand@willowandreedprivate.com.au