Offset account
What is your savings balance actually worth?
Money sitting in an offset account reduces the balance your interest is charged on, without being locked away. See what a given balance could save over the life of a loan — and what that figure quietly assumes.
An example rate you enter, not an offer from LoanTorq or any lender.
This assumes the balance stays there for the whole loan, which is rarely how savings actually behave.
Interest saved
$163,009
Paid off 4 yrs 6 mths sooner, if the balance stayed put the whole time
Time saved
4 yrs 6 mths
25 yrs 6 mths instead of 30 yrs
Total interest with the offset
$416,182
$579,191 without it
How this works
A 100% offset account is a transaction account linked to your loan. Interest is charged on the loan balance minus whatever is sitting in the offset, so $40,000 in offset against a $500,000 loan means you are charged interest as though you owed $460,000. Your repayment does not change, so more of each one goes to principal and the loan clears earlier.
The calculator assumes that balance stays put for the entire loan, and that is almost never true. An offset is a working account: money moves in and out, and the benefit only accrues while the money is actually sitting there. Treat the figure here as the ceiling of what a steady balance could do, not as a forecast of what yours will do. A more honest way to read it is to enter the lowest balance you reliably hold rather than your current one.
It also does not account for account-keeping or package fees, which some lenders charge for an offset facility and which can eat into the benefit on smaller balances; whether the offset is genuinely 100% (some are partial); or the tax treatment of the interest you are not earning, which differs from earning it in a savings account. Whether an offset is the right structure for you, or whether paying the money straight off the loan would serve you better, depends on your circumstances and is worth talking through with David.
General information only, illustrative only. This calculator is not a quote, a pre-approval or a form of credit assistance. It assumes a 100% offset account, a rate that never changes, and an offset balance that stays constant for the whole term — none of which reflects how most accounts actually behave. It does not include account-keeping or package fees, partial offset arrangements, or any tax considerations. Actual savings depend on the lender, the product, its current policy and your individual circumstances.
The Clarity Call
Find out where you actually stand.
A 20-minute conversation with David about your loan, your equity and your options. It’s a conversation, not an application. No documents, and nothing goes on your credit file. If it turns up something worth pursuing, you’ll have a clear next step. And if the honest answer is ‘not yet’, you’ll hear that too. The straight answer is the point, either way.
Book my Clarity CallSee how we could helpNo cost · No obligation · No credit enquiry · A straight answer either way