See how much interest an offset balance could save you and how many years it could take off the loan — and where the structure has to earn its place.
What the offset calculator estimates
An offset account is a transaction account linked to your home loan. Every dollar sitting in it is subtracted from the loan balance before interest is worked out, so the money cuts your interest without being locked away — you can still draw on it. The calculator above takes your loan balance, rate, remaining term and the amount you hold in the offset, then shows two things: the interest that balance could save over the life of the loan, and how much sooner the loan could clear. Your scheduled repayment does not change; the saving comes from more of each repayment going to principal once the interest charge drops.
What actually drives the number
The benefit hinges on the balance you genuinely keep there. A high offset that you regularly redraw delivers far less than the figure suggests, because the saving only exists while the money is sitting against the loan. Adding a steady surplus each month compounds the effect over the years. The other half of the question is policy: some lenders charge a higher rate or an annual package fee for a full offset, and a "partial" offset is not the same product. Whether an offset beats simply paying the loan down — or parking the same money elsewhere — depends on the rate, the fee and how you use the account.
Use it as a starting point
Treat the result as a guide to whether an offset is worth structuring into your loan, not a verdict on a specific product. The right answer is the lender and structure that fit how you actually run your money. Book a strategy session and we will model it against your real position.
General information only — not personal financial product or credit advice. The estimate is indicative and depends on each lender's policy, current rates and your full circumstances. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).