Offset Account
Calculator

How does an offset account save you money?

An offset account is a transaction account linked to your home loan. Your lender calculates interest only on the difference between your loan balance and the total balance sitting in your offset account. If you owe $650,000 and have $50,000 in offset, you're charged interest on $600,000 — every single day.

Why multiple offset accounts?

Many Australian lenders — including Commonwealth Bank, ANZ, NAB, Macquarie, and Athena — allow multiple offset accounts against a single loan. This lets you bucket your money (bills, emergency fund, holiday savings) without losing the interest benefit. Every dollar in any linked account reduces your interest charge.

Partial vs full offset

This calculator assumes a full offset account, where 100% of your balance offsets the loan. Some older or lower-rate products offer partial offset (e.g. 40%) — in that case your savings will be proportionally lower. Always check your loan product disclosure statement.

The offset account vs redraw comparison

Redraw facilities work differently — extra repayments sit inside the loan and reduce your balance directly, but accessing those funds is at the lender's discretion and may have tax implications for investment loans. Offset keeps money separate, accessible, and with no tax risk on investment properties.