Offset vs extra repayments
See how an offset account stacks up against extra repayments on your loan.
Extra repayments
Interest saved
$103,145
Time saved
4 years, 6 months
Offset account
Interest saved
$128,318
Time saved
3 years, 6 months
Dollar for dollar, money in an offset account and extra repayments save you the same interest — the difference is access. Offset money stays available to withdraw; extra repayments are paid down (you may be able to redraw, depending on the loan).
Estimates only, for illustration — they assume a constant interest rate and a constant offset balance, and ignore fees and any offset/redraw account costs. Not financial advice. Talk to us about the right loan structure for your situation.
About this calculator
If you've got spare cash, two of the best ways to put it to work on your home loan are extra repayments and an offset account. Both reduce the interest you're charged — but they work differently, and which suits you comes down to how much access to that money you want.
This calculator shows the interest and time each approach could save, so you can weigh them up. Dollar for dollar the interest saving is the same; the real difference is that offset money stays available, while extra repayments are paid into the loan.
How it's calculated
- We work out your normal repayment for the loan amount, rate and term you enter.
- For extra repayments, we add your extra amount to every repayment and amortise until the loan clears — the saving is the interest you avoid by clearing it sooner.
- For the offset account, we charge interest on your balance minus the offset amount each period (keeping the repayment the same), so more goes to principal and the loan clears faster.
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