Offset Account Calculator: Interest You Could Save

Your loan

Loan amount

Interest rate, % per year

Your current rate, or a rate you're considering. We don't suggest a rate.

Not sure what rate to enter?

If you have a loan, your rate is on your loan statement or in your banking app.
If you're buying or refinancing, use a rate a lender has offered you or one you've seen advertised.
For reference, the average variable rate on new home loans in August 2026 was about 6.2% for owner-occupiers and 6.4% for investors (Reserve Bank of Australia). Your rate depends on the lender, the loan and your situation. This is a market average, not a rate we're offering.
Not sure what rate you'd get? Ask Nabita

Years left on the loan

How often you repay

Balance in your offset account

The amount you expect to keep in the account, on average.

Your estimate

Fill in your loan details and press Calculate my savings.

How we worked this out

Interest is charged each time you repay (monthly, fortnightly or weekly), on the loan balance less your offset balance. This is how Moneysmart's mortgage calculator works; lenders usually charge interest daily, so their figures can differ slightly.
The rate stays the same for the whole loan. In real life, rates change.
Repayments are the amount that pays off the loan over the term you chose. Your repayment stays the same; the offset balance pay the loan off sooner.
Your offset balance stays the same for the whole loan. Offset accounts usually come with a package or account fee, which isn't included.
Not included: fees and charges, lenders mortgage insurance, and rate changes.

Estimate only. This is an estimate based on the figures you entered and the assumptions shown. It isn't a quote, a loan offer or an approval, and it doesn't take into account your full financial situation. Lenders apply their own policies, and all applications are subject to lender approval.

How MoneyGenie helps

Nabita compares options from MoneyGenie's panel of 35+ lenders, tells you upfront which are realistic for your situation, and handles the application with you through to settlement. Our service is generally at no cost to you, as we're paid a commission by the lender, which we disclose to you upfront. Details are in our Credit Guide, available on request. Talk to Nabita: call 040 110 1608 or send an enquiry.

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Frequently asked questions

How does an offset account work?

An offset account is a transaction or savings account linked to your home loan. Its balance is subtracted from the loan balance before interest is worked out. With a $500,000 loan and $20,000 in the offset account, you pay interest on $480,000.

Is an offset account worth the fee?

It depends on how much you keep in it. Moneysmart suggests comparing the fee with the interest you expect to save; if your balance is usually low, the fee can outweigh the saving.

Is an offset account better than extra repayments?

Both reduce the interest you pay. Money in an offset account stays available to you, while extra repayments go into the loan (some loans let you redraw them). Which suits you depends on your plans and the loan's features.

Figures checked 26 October 2026 by Nabita, mortgage broker, MoneyGenie Finance.

Official sources

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Talk to Nabita about your result

Send your details and Nabita will be in touch within 24 hours. Or call 040 110 1608 or message on WhatsApp.

Offset account calculator