Offset Account & Extra Repayment Savings Calculator
See what money in an offset account and extra repayments actually save you. Both reduce interest, but they work differently - an offset keeps the money accessible while extra repayments reduce the debt itself.
Your details
Used to compare against a savings account
| Interest without offset or extra repayments | $956,584 |
| Interest with your strategy | $634,084 |
| Offset saving in year one $50,000 x 6.50% | $3,250 |
| Offset saving per month (year one) | $271 |
| Equivalent pre-tax savings rate a savings account would need to pay this at a 32.5% marginal rate | 9.63% |
| Extra repayments contributed | $56,200 |
| Lump sum applied | $0 |
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Frequently asked questions
Is an offset better than making extra repayments?
The interest saving is nearly identical. The difference is access and tax: offset money stays yours and can be withdrawn without affecting deductibility, while redrawing an extra repayment is treated as new borrowing.
Is the offset worth an annual package fee?
At 6.5%, a $395 annual fee is covered by roughly $6,100 held in offset. Below that balance the fee costs more than the offset saves.
General advice warning: This calculator provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice.
Results are estimates based on the inputs and assumptions shown. Any interest rate used is an example and is not an offer of credit. Speak to a licensed credit representative before acting on these figures.