Estimate what an offset account could save after annual fees and any rate premium.
The starting figures are an example. Repayments are monthly.
$91,999.56net estimated benefit after entered fees and rate premium
Gross offset interest saved: $91,999.56 before the entered annual fee and compared with the same premium-priced loan without an offset balance.
$0.00
With no entered annual fee or rate premium, any positive offset balance can reduce interest.
Your offset money stays in the account and is not used to repay the debt. The estimate uses your entered average balance, then increases it by any monthly amount you add.
Source: Ratepool calculation from your inputs. Monthly principal and interest; fees excluded. Annual figures and assumptions below.
An illustration, not a lender quote. The final repayment may differ.
Scroll the table sideways to see both balances and interest amounts.
| Year | Balance: without offset | Balance: with offset | Interest: without offset | Interest: with offset |
|---|---|---|---|---|
| 1 | $491,099.77 | $489,249.43 | $29,757.89 | $27,907.55 |
| 2 | $481,650.59 | $477,835.80 | $29,208.94 | $27,244.48 |
| 3 | $471,618.61 | $465,718.19 | $28,626.14 | $26,540.51 |
| 4 | $460,967.87 | $452,853.20 | $28,007.39 | $25,793.13 |
| 5 | $449,660.23 | $439,194.72 | $27,350.47 | $24,999.64 |
| 6 | $437,655.15 | $424,693.82 | $26,653.04 | $24,157.22 |
| 7 | $424,909.62 | $409,298.53 | $25,912.59 | $23,262.83 |
| 8 | $411,377.98 | $392,953.70 | $25,126.48 | $22,313.29 |
| 9 | $397,011.73 | $375,600.75 | $24,291.88 | $21,305.17 |
| 10 | $381,759.41 | $357,177.51 | $23,405.80 | $20,234.88 |
| 11 | $365,566.36 | $337,617.97 | $22,465.07 | $19,098.58 |
| 12 | $348,374.56 | $316,852.03 | $21,466.32 | $17,892.19 |
| 13 | $330,122.40 | $294,805.30 | $20,405.96 | $16,611.39 |
| 14 | $310,744.49 | $271,398.77 | $19,280.21 | $15,251.59 |
| 15 | $290,171.39 | $246,548.58 | $18,085.02 | $13,807.93 |
| 16 | $268,329.39 | $220,165.69 | $16,816.12 | $12,275.23 |
| 17 | $245,140.22 | $192,155.56 | $15,468.95 | $10,647.99 |
| 18 | $220,520.80 | $162,417.82 | $14,038.69 | $8,920.38 |
| 19 | $194,382.90 | $130,845.92 | $12,520.22 | $7,086.22 |
| 20 | $166,632.87 | $97,326.74 | $10,908.09 | $5,138.94 |
| 21 | $137,171.29 | $61,740.17 | $9,196.53 | $3,071.55 |
| 22 | $105,892.57 | $23,972.72 | $7,379.41 | $890.68 |
| 23 | $72,684.66 | $0.00 | $5,450.20 | $0.00 |
| 24 | $37,428.55 | $0.00 | $3,402.01 | $0.00 |
| 25 | $0.00 | $0.00 | $1,227.49 | $0.00 |
Principal and interest, with monthly repayments at the end of each month. We divide the annual rate by 12 and compound monthly. Regular payments round to cents; the last payment clears the remaining debt. Displayed totals are rounded separately. Lenders often calculate interest daily and may use different payment dates or rounding.
The entered amount is the average offset balance in the first month. Any monthly increase is added before each later month’s interest calculation. We reduce the loan balance charged interest by the applicable offset amount, never below zero. The offset loan repayment uses the entered rate plus any premium. Offset funds are not spent on repayments or used to clear the final balance.
The net benefit includes the annual fee you enter, charged once for each started loan year. The break-even result uses the first year and a steady average balance; it does not use your optional monthly balance increase. Other fees, taxes, future rate changes and account returns are excluded. This tool does not assess affordability or eligibility.
Money in an offset account reduces the balance charged interest. It remains separate from the loan. Use a realistic average balance after everyday deposits and spending, then add only the monthly growth you expect to retain.
Moneysmart: mortgage offset accountsAn offset loan may have account or package fees, or a higher interest rate. Enter both so the headline shows the net estimated benefit. Check whether the account offers a full or partial offset.
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