Home Loan Offset Calculator

Don’t be confused by what Offset means as it is used too loosely too often. Simply speaking, because interest can only be charged on the actual daily balance, any repayments you make, whether small and regular or large lump sums, reduces the balance that interest can be calculated on. So the interest charged to you is less. If you continue to make your standard loan repayment as well, more of that repayment will go off the principle debt instead of interest. An Offset account linked to a loan achieves the same thing, so you don’t need to pay the extra cash into the loan to reduce the balance that interest is calculated on. You simply just let it accumulate in the Offset account. In the Offset field below, put the amount of cash on average you expect to be able to hold on an ongoing basis. Whether you choose to pay extra funds into the Loan account or Offset account is a matter of understanding your goals and what you want to achieve. Have a play below and discuss the result with us