Wondering how much interest cost you can save on your home loan? This mortgage offset calculator tool can provide an accurate estimate of the impact that using your offset account will have on your mortgage repayments and the interest you could save over the life of your loan.
To begin, enter your loan details and offset account balance into our calculator. Once you have entered the information correctly, the calculator will display a comparison of the loan balance with and without the use of your offset account. This difference represents the interest you could save in the particular scenario.
You can try adjusting the variables on the calculator to test different offset account balances and ongoing deposit amounts. Using your offset account may not always be beneficial, and our mortgage offset calculator can help you chart a path towards your desired financial outcome. Try our mortgage offset calculator today and see how much you could save.
How using your offset account reduces the interest you pay
Your offset account is a savings account linked to your home loan. You can make use of the balance in this account to count towards the remaining home loan before interest is calculated. Doing so will reduce the overall cost of interest on your home loan.
The actual amount of interest savings is dependent on the balance of your offset account — the more funds you have in it, the greater the savings you’ll reap.
Why you should use a mortgage offset calculator
Understanding how much interest you can save with certain balances in your offset account can help you plan ahead and manage your home loan better. Your potential interest savings are dynamic, meaning that they change with the daily level of funds in your offset account. Because of this, it can be hard to tell just how much interest you will save with manual estimations.
With our mortgage offset calculator, you’ll be able to get an accurate estimate for interest savings at the press of a button, helping you visualise and compare different scenarios to make an informed decision about your finances.
Can I use 100% of an offset account for my mortgage?
In many cases, yes, you can use a 100% offset account for your mortgage. A 100% offset account is an arrangement where the balance of your savings or transaction account is fully offset against the outstanding balance of your mortgage. This means that you’ll be charged interest on the net balance (the difference between your mortgage amount and the balance in your offset account).