Offset Mortgage Calculator Dashboard
Calculate how much interest and time you can save on your mortgage by offsetting it with your savings. Discover how your savings can work harder for you by reducing your mortgage interest daily and shortening your loan term.
Mortgage Details
Configure your loan and offset savings
Total Interest Saved
$306,307
Time Saved
8y 6m
Payoff Date
22 years
Standard Total Interest
$579,191
With Offset
$272,883
Pro Tip: Even a small monthly offset contribution can significantly reduce your total interest and shave years off your mortgage.
Mortgage Balance Over Time
Interest Comparison
Standard Payment
$1,079,191
Offset Total
$772,883
Yearly Milestone Comparison
Comparing Standard vs Offset Balance
| Year | Standard Balance | Offset Balance | Interest Saved (Acc.) | Savings Growth |
|---|---|---|---|---|
| Year 1 | $493,860 | $490,608 | +$3,252 | $56,000 |
| Year 2 | $487,341 | $480,267 | +$7,074 | $62,000 |
| Year 3 | $480,420 | $468,918 | +$11,502 | $68,000 |
| Year 4 | $473,073 | $456,499 | +$16,573 | $74,000 |
| Year 5 | $465,272 | $442,944 | +$22,328 | $80,000 |
| Year 6 | $456,990 | $428,183 | +$28,807 | $86,000 |
| Year 7 | $448,197 | $412,141 | +$36,055 | $92,000 |
| Year 8 | $438,862 | $394,740 | +$44,121 | $98,000 |
| Year 9 | $428,951 | $375,896 | +$53,055 | $104,000 |
| Year 10 | $418,429 | $355,519 | +$62,910 | $110,000 |
| Year 11 | $407,257 | $333,515 | +$73,742 | $116,000 |
| Year 12 | $395,397 | $309,785 | +$85,613 | $122,000 |
| Year 13 | $382,805 | $284,220 | +$98,585 | $128,000 |
| Year 14 | $369,437 | $256,709 | +$112,729 | $134,000 |
| Year 15 | $355,244 | $227,130 | +$128,114 | $140,000 |
| Year 16 | $340,176 | $195,357 | +$144,819 | $146,000 |
| Year 17 | $324,178 | $161,255 | +$162,923 | $152,000 |
| Year 18 | $307,194 | $125,369 | +$181,825 | $158,000 |
| Year 19 | $289,162 | $89,396 | +$199,766 | $164,000 |
| Year 20 | $270,018 | $53,423 | +$216,595 | $170,000 |
| Year 21 | $249,693 | $17,450 | +$232,243 | $176,000 |
| Year 22 | $228,115 | Paid Off | +$246,638 | $179,000 |
| Year 23 | $205,205 | Paid Off | +$259,702 | $179,000 |
| Year 24 | $180,883 | Paid Off | +$271,352 | $179,000 |
| Year 25 | $155,060 | Paid Off | +$281,503 | $179,000 |
| Year 26 | $127,645 | Paid Off | +$290,061 | $179,000 |
| Year 27 | $98,539 | Paid Off | +$296,928 | $179,000 |
| Year 28 | $67,638 | Paid Off | +$301,999 | $179,000 |
| Year 29 | $34,831 | Paid Off | +$305,165 | $179,000 |
| Year 30 | $0 | Paid Off | +$306,307 | $179,000 |
How it Works
Interest is calculated on the mortgage balance minus the linked savings balance. Unlike a standard savings account where you earn taxable interest, an offset account saves you mortgage interest which is effectively tax-free and usually calculated at the much higher mortgage rate.
The Logic
Effective Balance = Loan Principal - Offset BalanceExample Scenario
Knowledge Hub
Frequently Asked Questions
Q: How does an offset mortgage work?
An offset mortgage links your savings account to your mortgage. The balance in your savings is subtracted from the mortgage balance before interest is calculated, meaning you only pay interest on the difference.
Q: Do I still have access to my savings?
Yes, typically you can access your savings in an offset account just like a regular savings account. However, withdrawing money will increase the interest you pay on your mortgage.
Q: Can an offset mortgage shorten my loan term?
Yes! Because less of your monthly payment goes toward interest, more goes toward paying down the principal. This accelerates the repayment process and can shave years off your mortgage.
AI Assistant
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Why Use Offset?
- Tax Efficiency: Savings interest is usually taxable, but mortgage interest saved isn't.
- Term Reduction: Paying less interest means your principal drops faster, shortening your loan.
- Flexibility: Keep your cash for emergencies while still saving on mortgage interest.
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