CALCULATOR
Offset and extra repayments calculator
Your numbers
Enter a loan balance, interest rate and an offset balance or extra repayment to see your estimate.
Estimated interest saved
$0
- Paid off sooner by
- 0
- Minimum monthly repayment
- $0
| Total interest | Loan paid off in | |
|---|---|---|
| No offset or extras | ||
| Offset only | ||
| Extra repayments only | ||
| Offset and extra repayments |
Every dollar in an offset account is taken off your loan balance before interest is worked out. Extra repayments go straight off the balance. Both mean less interest and a loan that's paid off sooner. Enter your numbers to see roughly how much.
What this doesn't include
- Changes to your offset balance. It assumes the balance stays the same. In real life it goes up with your pay and down with your bills.
- Rate changes. It assumes your rate stays the same for the rest of the loan.
- Fees. Offset accounts often come with a package or account fee, and offset loans can have a slightly higher rate. Weigh that against the interest saved.
- Partial offsets. Some lenders only offset part of the balance. This assumes a full, 100% offset.
Questions, answered
How does an offset account work?
It's a transaction or savings account linked to your home loan. The balance is taken off your loan balance when the lender works out interest. With a $600,000 loan and $50,000 in offset, you're charged interest on $550,000. Your money stays yours, and you can usually spend it like any other account.
Is offset or extra repayments better?
They can save a similar amount of interest. The difference is access. Money in offset stays in your account. Extra repayments go into the loan, and getting them back depends on your lender's redraw rules. Our guide on redraw vs offset goes through it.
Can I make extra repayments on a fixed rate loan?
Often only up to a cap set by the lender, and going over it can trigger break costs. Many fixed loans don't come with a full offset either. Check your loan terms before you pay extra.
Does my minimum repayment change?
Usually not. On most loans the minimum stays the same, and the offset or extra repayments shorten the loan instead. Some lenders recalculate the minimum from time to time, so check with yours.
Is there a tax angle?
Interest earned in a savings account is usually taxable. Interest you avoid through an offset isn't income, so an offset can work out better than saving at the same rate. If the property is, or may become, an investment, offset and redraw can be treated very differently for tax. See your accountant before you decide.
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This calculator gives estimates only, based on the figures you enter. It assumes a principal and interest loan with monthly repayments, a full offset, an offset balance and rate that stay the same and extra repayments made every month. It doesn't include fees or charges. It isn't a quote, a credit offer or an indication that you'd be approved for a loan. It's general information only and doesn't take your objectives, financial situation or needs into account. No interest rates are quoted on this website.