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🏦 Offset Mortgage Calculator

See exactly how much your offset account saves you — in interest and years off your loan.

Your loan
$
%
yrs
$
Package fee (optional — some lenders charge ~$395/yr for offset)
$
Common fees: CBA Wealth Package $395 · NAB Choice Package $395 · Westpac Premier $395 · ANZ Breakfree $395 · Macquarie Offset (no fee on some products)
Growing offset balance (optional — adds realism)
$
$

How does an offset account work?

An offset account is a transaction account linked to your home loan. Instead of earning interest, the balance in your offset account is subtracted from your loan balance before interest is calculated each day.

Loan balance$600,000
Offset balance$50,000
You pay interest on$550,000 only

Why is it better than a savings account?

The interest rate on your home loan (e.g. 6.2%) is almost always higher than a savings account rate. Putting $50,000 in an offset at 6.2% effectively saves you more than parking it in a HISA at 5.5% — and the offset savings are tax-free (you're reducing a cost, not earning income).

Partial offset vs full offset

Most Australian lenders offer 100% offset — the full balance offsets your loan. Some older or basic products offer partial offset (e.g. 40% of balance counts). Always check.

💡 Tax tip: Offset account savings are not taxable income. A savings account earning 5% is taxed at your marginal rate — at 37% tax, you effectively only keep 3.15%. Your offset account saving 6.2% is worth 6.2% after tax. Big difference.

Who offers offset accounts in Australia?

Most major lenders offer offset accounts — CBA, NAB, Westpac, ANZ, Macquarie, ING, and many others. Offset accounts are typically only available on variable rate loans (a few lenders offer them on fixed, but it's rare and usually capped). They often come with a slightly higher interest rate or package fee (~$395/yr) — run the numbers to ensure it's worth it.