Refinancing
Offset account calculator.
Offset accounts are widely misunderstood. Here's what a given balance is genuinely worth.
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Your typical balance across the month, not your peak.
Interest saved in year one
$2,440
An offset account reduces the balance you're charged interest on, without locking the money away.
- Interest without offset (year one)
- $36,600
- Interest with offset (year one)
- $34,160
- Balance interest is charged on
- $560,000
- Monthly repayment
- $3,636
- Indicative term reduction
- ~1 months
What could change this figure
- How much you actually keep in the offset month to month
- Whether the account is a true offset or a redraw facility
- Package or account fees charged for the offset
- Whether your loan is fixed, since most fixed loans don't allow full offset
This is an estimate only, based on the figures you have entered and simplified assumptions. It is not credit advice, an offer of credit, or an indication that any lender will approve a loan. Year-one figures are simplified and do not compound month by month. Term reduction is indicative only.
How this is calculated
- Year-one interest is calculated simply and does not compound month by month.
- The offset balance entered is treated as a constant average across the year.
- Term reduction is indicative and assumes repayments stay unchanged.
- Most fixed-rate loans do not offer a full offset facility.
Free guide
The Fifteen Minute Refinance Review
What staying put is really costing you
- How to check your rate against what's actually available now
- The real cost of switching, and when it isn't worth it
- Structuring an offset properly instead of just chasing a rate
- Consolidating debt without quietly resetting the clock
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