Mortgage Offset Calculator

Know how much you can save using a redraw offset facility. Pay off your home loan faster and with less interest.

Houses are expensive so most people need a mortgage to buy one. When you get a mortgage, you agree to pay back your loan with interest.

One way you can pay off your loan faster and also save on your monthly repayments is by adding an offset to your mortgage. With banks or building societies this will take the form of an offset account, and with non-bank lenders such as it will be a redraw offset facility. A redraw offset facility is a sub-account within your loan account. You can put money, potentially including your salary, into the offset. You can also withdraw money when you need it through a card linked to the account.

A mortgage offset account or redraw offset facility generally works by offsetting the balance you have in your offset account against the money you owe on your home loan. You are only required to pay interest on the difference.

For example, imagine you have a loan balance of $300,000 and have $15,000 in your offset account or redraw offset facility. If you have a full 100% offset, the interest on your mortgage will be calculated on a balance of $285,000. Essentially, the amount of money you put in a 100% offset account will reduce your loan balance when interest is calculated. The more money you have in your offset, the more money you will save.

How to use an offset mortgage calculator

Like other types of online home loan calculators, to use a mortgage calculator you must first enter the necessary details. You’ll need to input figures such as your loan amount, interest rate, the term of your loan, payment frequency whether it’s monthly or fortnightly, and your offset balance.

The result will show you your regular loan repayments, the total mortgage amount, the interest paid, and the interest you will save from your offset account or redraw facility. An offset mortgage calculator comes in handy when you need to determine whether or not an offset mortgage account will benefit you, given your financial situation.

You can also compare your current mortgage results to one with an offset mortgage account, so you can see the difference when you decide to add the offset feature to your regular loan.

Remember, this calculator will only give an estimate of your repayments and the amount of money you can save from an offset account. For a more exact figure, you can ask one of our lending specialists here at

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