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HOME & DEBT / OFFSET VS SAVINGS

Offset or savings account?

Compare one year of avoided home-loan interest with savings interest after your assumed tax.
These estimates are a guide, not personal financial or tax advice. Don’t rely on them alone to borrow, invest or change work arrangements. Check your actual rates, entitlements and costs, and get qualified advice when needed.

Make it yours

Example figures are filled in to get you started. Replace them with your own.
Cash available ($)
Home-loan balance ($)
Home-loan rate (%)
Savings account rate (%)
Your assumed marginal tax rate including applicable levies (%)
Annual extra cost of offset facility ($)
Annual savings account fees ($)
YOUR ILLUSTRATIVE RESULT
Based only on the values entered and assumptions below.
Annual interest avoided, less offset costs
$1,080
Annual savings interest on the SAME eligible cash, after tax and fees
$680
Offset benefit minus savings benefit
$400
Cash compared in each option
$20,000
Excess cash excluded from BOTH options
$0

How this estimate works

One-year simple-interest snapshot with unchanged balances and rates; full offset on a NON-DEDUCTIBLE home loan. Both options compare the same cash, capped at the loan balance. Excess cash is excluded from both options; decide separately where to hold it. Enter all incremental offset costs, including any higher loan rate. Savings tax is a flat user assumption, not a tax assessment. Savings fees are deducted after tax; any deductibility is excluded. No compounding, repayments, bonus-rate conditions or withdrawals. Avoided interest is not an investment account balance.
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These estimates are a guide, not personal financial or tax advice. Don’t rely on them alone to borrow, invest or change work arrangements. Check your actual rates, entitlements and costs, and get qualified advice when needed.
All amounts are Australian dollars. Example values are editable illustrations, not typical family costs or quoted rates. Inputs stay in this page’s memory; they are not saved or sent. Refreshing or leaving the calculator clears them. Models reviewed 22 October 2026.