The Finance Algorithm
§ Tool · tier 1 · independent

Loan Offset Account Benefit Calculator.

Calculate potential savings on your home loan interest from using an offset account.

CalculatorFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$600k
%
6.5%
$
$30k
30

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Using an offset account with your home loan can save you thousands in interest and shorten your loan term. This calculator helps you understand the impact of your offset account balance on your loan cost.

§ Worked examples

Real-world scenarios

First Home Buyer

A young buyer uses the offset account calculator to understand potential savings and plans to maximize their offset balance over time.

Inputs

loanAmount:500,000interestRate:6.5offsetBalance:30,000loanTermYears:30

Using an offset account with a $30,000 balance could save around $58,500 over the term and reduce loan duration by about 10 months.

Refinancer

A homeowner plans to refinance and uses the calculator to evaluate the benefits of an offset account.

Inputs

loanAmount:800,000interestRate:5.75offsetBalance:50,000loanTermYears:25

Higher offset account balances result in significant interest savings and faster loan repayment.

§ Glossary

Plain-English definitions

Offset Account
A savings or transaction account linked to your home loan that reduces the amount of interest payable on the loan by offsetting the loan principal.
Interest Savings
The reduction in total interest payable on your loan due to balance in the offset account.