Offset Account Worth It Calculator
Key takeaway:
An offset account is only worth it if the interest you save beats the extra fee you pay to get it.
Enter your interest rate, average offset balance, and the extra annual fee. We will show the rough annual saving and whether the offset looks worth it.
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How this calculator works
The rough maths is simple. If you keep $40,000 in an offset and your loan rate is 6%, you avoid paying roughly 6% interest on that $40,000 for the year. That is about $2,400 in interest saved before you account for fees.
The catch is that offset loans often come with an annual package fee. This calculator keeps it simple and compares your estimated interest saving against that yearly cost.
- Average offset balance matters most: a mostly empty offset usually is not worth paying extra for.
- Owner-occupier flexibility: offset is handy if you want your cash accessible rather than locked in redraw.
- Investment property caution: offset often has cleaner tax treatment than redraw, but get tax advice before restructuring.
A quick rule of thumb: multiply your average offset balance by your interest rate. If that number barely beats the extra cost, the offset probably is not worth paying up for.
Want to compare more mortgage scenarios?
Also try the Mortgage Repayment Calculator and the Offset Mortgage Calculator if you want the longer-term loan impact too.