Offset calculator

Quantify the trade-off between liquidity and interest savings before choosing your loan setup.

Offset impact

Interest without offset

$850,738

Interest with offset

$672,172

Estimated interest saved

$178,566

Estimated years saved

3.33 yrs

With-offset amortization preview

First 18 periods

Period	Payment	Interest	Principal	Balance
1	$4,363	$3,457	$906	$719,094
2	$4,363	$3,452	$911	$718,182
3	$4,363	$3,447	$916	$717,267
4	$4,363	$3,443	$920	$716,346
5	$4,363	$3,438	$925	$715,421
6	$4,363	$3,433	$930	$714,491
7	$4,363	$3,429	$934	$713,557
8	$4,363	$3,424	$939	$712,618
9	$4,363	$3,419	$944	$711,674
10	$4,363	$3,414	$949	$710,725
11	$4,363	$3,410	$954	$709,771
12	$4,363	$3,405	$958	$708,813
13	$4,363	$3,400	$963	$707,849
14	$4,363	$3,395	$968	$706,881
15	$4,363	$3,390	$973	$705,908
16	$4,363	$3,385	$978	$704,930
17	$4,363	$3,380	$983	$703,947
18	$4,363	$3,375	$988	$702,959

Mental accounting clarity

Offset cash can feel "untouched" while still working for you. This tool makes invisible interest savings explicit.

Optionality value

Offset usually preserves access to cash. That flexibility has value, especially when income or expenses are uncertain.

Second-order trade-off

Higher package fees can erode savings. Evaluate net benefit after fees, not gross interest saved alone.

Decision thresholds for offset strategy

Green

Net interest saved after fees remains strong and you value immediate access to funds.

Amber

Offset benefit is moderate. Compare against disciplined extra repayments and redraw conditions.

Red

Offset balance is too low or unstable to justify fee load. Reconsider structure or banking habits.

Recalculate repayment baseline

Confirm core repayment plan before introducing offset assumptions.

Stress-test rate movement

Check whether your offset strategy still works under +1% and +2% rates.

Score quote quality

Assess whether package and feature pricing align with your real offset usage.

Liquidity with discipline

Offset is powerful when balances are stable and fees are justified.

Use this output to decide whether your offset setup beats alternatives after all costs.

Open quote decision canvas

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FAQs

How does an offset account reduce mortgage interest?

Interest is charged on loan balance minus offset balance, so a stable offset balance reduces interest each period.

Is offset better than extra repayments?

Offset keeps cash accessible, while extra repayments directly reduce principal. The better choice depends on flexibility needs and fee structure.

Does this include package and account fees?

No. This tool models repayment and interest only. Add lender package or account fees separately.