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Offset calculator

Use Finder's offset account calculator to see how you could pay less interest and own your home outright sooner, without spending an extra cent.

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Use Finder's offset account calculator to estimate how much you could save with an offset account attached to your mortgage. Money saved in an offset account helps you pay off your home loan faster, by reducing the amount of interest you pay and redirecting that money into your loan principal. The more money you put in your offset (and the earlier you put it there), the more you save.

Learn how it works and compare home loans that come with offset accounts below.

Home loan offset calculator

*Please note that the calculator provides an estimate of your potential offset savings only. The calculator does not take into account various details such as loan fees or changes to your interest rate.

Using the offset calculator

Finder's home loan offset calculator is simple to use. If you already have a home loan then input your interest rate and loan amount.

If you don't have a home loan yet, use your best estimate (and compare home loans to find a reasonable interest rate to use as an example).

  • Loan term and loan amount. Enter the total amount you've borrowed and the length of the home loan. If you don't have a loan yet, put in 30 years and an estimated amount.
  • Interest rate. Put in your current interest rate or an estimate if you're not sure.
  • Repayment frequency. Your repayment frequency is either weekly, monthly or fortnightly. This part of the calculator refers to your regular repayments and not any offset payment.
  • Offset amount. Enter the amount of money you're planning to save in the offset account as a single sum.
  • Offset starts at year. If you currently have a home loan, how long have you had it for? If you're 4 years into your home loan, put 4 years. If you don't have a home loan yet and are planning to save money in the offset account from day one, put 0 years.

Here's a helpful example to show you how it works.

Offset savings example calculation

Let's say you are 3 years into a 30-year, $500,000 home loan with a 100% offset account, which you haven't yet added any savings to. You have built up some money in a seperate savings account, earning less than 1% interest, and you want to see if an offset account will help you.

You enter your loan details into the offset calculator:

  • Loan amount: $500,000
  • Loan term: 30 years
  • Interest rate: 2.80%
  • Offset (savings) amount: $25,000
  • Start offset at year: 3
  • Results: You will repay your home loan 13 months early and save $26,711 in interest

The $25,000 savings results in you paying $26,711 less in interest. Instead of paying this in interest, this money will go towards your loan principal. If you add more money to the offset account over time, this saving will increase.

How do home loan offset accounts work?

A home loan offset account acts like a normal bank account but it's attached to your home loan. And instead of earning you interest, the money in the offset account saves you in interest charges.

It works by offsetting the loan principal (the money you are repaying). For example, if you have $400,000 on your home loan and $20,000 in an offset account, then your lender sees this as a $380,000 loan principal. Thus, you are charged less in interest.

Your repayments won't change month to month with that $20,000 saved in offset. Instead, you will pay less in interest and pay more off the loan principal, meaning you repay the loan faster.

You can withdraw and spend the money in your offset account if you need to. This will reduce the amount of interest you avoid paying, but it gives you more control over your money to spend in emergencies.

More offset calculator questions

We've answered a few of the more common questions Australian borrowers ask about offset accounts and our calculator. If you need more help please leave a comment on the page or organise a free chat with a qualified mortgage broker.

How accurate are the calculator results?

The offset calculator results are an estimate of your potential offset savings. The calculator doesn't take into account:

My current loan doesn't have an offset account: How do I get one?

Not every home loan has an offset account. It's a premium loan feature and many basic variable loans and fixed rate loans don't come with offsets.

If your loan doesn't have an offset account but you think you could save interest with an offset, consider refinancing your loan. This is the process of switching from one loan and lender to another.

Compare your options and find a suitable loan (ideally with a lower interest rate) and a 100% offset account. Once the loan is approved, you can transfer funds from your savings to the new offset account.

Is a redraw facility just as good as an offset account?

While similar, a redraw facility is different to an offset account. When you save money in an offset account it is your money in your account. You can withdraw and spend it as needed.

With a redraw facility, you make extra repayments onto your home loan and redraw (in other words, withdraw) from the loan itself. This money is your lender's money and they are allowing you to access some of it, but that is at their discretion.

While extra repayments also shrink your interest costs as offset savings do, a redraw facility is less flexible. Some lenders restrict how much of your extra repayments you can access, or charge a fee for doing so.

What's a partial offset account?

Most offset accounts will offset your loan principal 100%, so every dollar you save in the account offsets your principal by the same amount, dollar for dollar. Partial offsets only offset your loan principal to a specified percentage. For example, a partial offset may offset your principal by 60%, meaning $1 offsets your principal by 60 cents.

Partial offsets are significantly less beneficial and our calculator does not offer a partial offset calculation. It's not worth settling for a partial offset account when there are so many fully-featured 100% offset account options available.

Compare home loans with 100% offset accounts

1 - 11 of 11
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years
Name Product Comparison Rate Fees Monthly Payment

homeloans.com.au Low Rate Home Loan with Offset
Principal & interestOwner-occupier20% min. deposit
Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.74%
2.74%
  • Application: $0
  • Ongoing: $0 p.a.
$613
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.

Nano Variable Home Loans
Principal & interestOwner-occupier20% min. deposit
Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.74%
2.74%
  • Application: $0
  • Ongoing: $0 p.a.
$613
Competitive rate with zero fees, fast approval and a 100% free offset account. Available for refinancers and existing buyers purchasing their next home. 20% deposit required.

Well Money Balanced Fixed Home Loan
Principal & interestOwner-occupier 3Y Fixed10% min. deposit
Principal & interestOwner-occupier 3Y Fixed10% min. deposit
Interest Rate
5.79%
3.45%
  • Application: $250
  • Ongoing: $0 p.a.
$881
A low 3 year fixed rate for home buyers. Add a 100% offset account with a $10 monthly fee. Not available for construction purposes.

Macquarie Bank Offset Home Loan Package
Principal & interestOwner-occupier40% min. deposit
Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.84%
3.11%
  • Application: $0
  • Ongoing: $248 p.a.
$621
A variable rate loan for borrowers with 40% deposits or refinancers with equity in their properties. This loan has an offset account. Fast online application. $0 application fee and $0 ongoing fees.

Nano Variable Home Loans
Interest onlyOwner-occupier20% min. deposit
Interest onlyOwner-occupier20% min. deposit
Interest Rate
3.24%
2.93%
  • Application: $0
  • Ongoing: $0 p.a.
$654
An interest-only loan for owner-occupiers with 20% deposits or equity. This loan has no fees. Available for refinancers and existing buyers purchasing their next home.

G&C Mutual Bank Momentum Home Loan
Principal & interestOwner-occupier40% min. deposit
Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.74%
2.76%
  • Application: $0
  • Ongoing: $0 p.a.
$613
A variable rate loan for owner-occupiers looking to refinance. This loan has low fees and a 100% offset account.

Newcastle Permanent Building Society Premium Plus Package Home Loan
Principal & interestOwner-occupier20% min. deposit
Principal & interestOwner-occupier20% min. deposit
Interest Rate
3.44%
3.83%
  • Application: $0
  • Ongoing: $395 p.a.
$670
New borrowers or refinancers can get a discounted rate with this package loan.

homeloans.com.au Low Rate Home Loan with Offset
Principal & interestOwner-occupier40% min. deposit
Principal & interestOwner-occupier40% min. deposit
Interest Rate
2.64%
2.64%
  • Application: $0
  • Ongoing: $0 p.a.
$605
A competitive rate with no application or ongoing fees. This loan is not available for construction.

Nano Variable Home Loans
Principal & interestInvestment20% min. deposit
Principal & interestInvestment20% min. deposit
Interest Rate
3.04%
3.04%
  • Application: $0
  • Ongoing: $0 p.a.
$637
Investors can get this no-fee variable rate loan. You will need a 20% deposit. Fast online approval. Available for refinancers and existing buyers purchasing their next property.

homeloans.com.au Low Rate Home Loan with Offset
Principal & interestInvestment20% min. deposit
Principal & interestInvestment20% min. deposit
Interest Rate
2.89%
2.89%
  • Application: $0
  • Ongoing: $0 p.a.
$625
This investment loan keeps fees low, has a sharp interest rate and comes with a 100% offset account. This loan is not available for construction.

loans.com.au Smart Booster Discount Variable Home Loan
Principal & interestOwner-occupier20% min. deposit
Principal & interestOwner-occupier20% min. deposit
Interest Rate
2.74%
3.22%
  • Application: $0
  • Ongoing: $0 p.a.
$613
Home buyers can get a very low discounted variable rate for the first year. Requires a 20% deposit. Add an offset sub-account for an additional 0.10% on your interest rate. Get your loan processed fast and settle within 30 days.
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2 Responses

  1. Default Gravatar
    KereMarch 26, 2019

    If you want to offset your loan, how can you work out the amount you will pay..?

    • Avatarfinder Customer Care
      JohnMarch 27, 2019Staff

      Hi Kere,

      Thank you for reaching out to Finder.

      If you’re considering an offset mortgage, use an offset mortgage calculator to see if you this might be a viable option for you once you have all the variables in hand. You would need the following information to estimate this:

      Loan amount. The loan amount refers to the amount of money you have borrowed or plan to borrow.
      Loan term. The loan term is the amount of time you have to repay the loan.
      Interest rate. The interest rate is the annual percent at which you repay the loan, which can be fixed or variable.
      Repayment frequency. The repayment frequency is the interval in which you make your repayments and is generally monthly, fortnightly or weekly.
      Offset account information. The offset account balance is the amount you have in your offset account while the ‘start after’ date is the time that has elapsed on the loan before the offset account is used.

      If you’d like more professional advice regarding this matter you can compare mortgage brokers in your area and get in touch with one for help today. Hope this helps!

      Cheers,
      Reggie

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