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See how much interest you save by keeping savings in an offset account
Interest is charged on your loan balance minus your offset balance. Same repayment each month — more goes to principal when you have an offset, so you pay off the loan faster and save interest.
Money in your offset reduces the balance on which interest is calculated. Same repayment amount each month.
If you put the same money in a savings account instead, you'd earn this much interest. Offset usually wins because loan rates are higher than HISA rates.
If you put the same money in a savings account
You would earn about $78,414 in interest over the same period. Using the offset saves you $162,783 on the loan — so the offset is typically the better place for your cash while you have the mortgage.
An offset account is a transaction or savings account linked to your home loan. The balance is 'offset' against your loan — you're charged interest only on (loan balance minus offset balance). Your repayment amount usually stays the same, so more of each payment goes to principal and you pay off the loan faster.
Not all loans have offset; full offset is most valuable. Some products offer partial offset (e.g. 50%). This calculator assumes 100% offset.
ATO rates checked against official sources — verified 3 July 2026
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
Rates and thresholds last updated for the 2026–27 financial year.