How does an offset account reduce interest?
Interest is typically calculated on loan balance minus offset balance. Larger average offset balances can reduce interest charged over the loan term.
Quick answer
This calculator estimates interest savings from offset balances and ongoing deposits. Use it to compare offset strategy against standard repayment pathways.
Interest is typically calculated on loan balance minus offset balance. Larger average offset balances can reduce interest charged over the loan term.
It depends on your need for liquidity. Offset can preserve access to funds, while extra repayments may reduce balance directly. Compare both strategies.
No. Offset availability and structure vary by lender and product. Confirm whether your loan supports full, partial, or no offset functionality.
Track average offset balance, interest charged, and repayment progress. Consistency in deposits is usually more important than occasional large transfers.