Offset Calculator

Calculator Assumptions: Offset Calculator

Length of Month

All months are assumed to be of equal length. In reality, many home loans accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month.

Number of Weeks & Fortnights in a Year

One year is assumed to contain exactly 52 weeks or 26 fortnights.

Repayment Amounts

Repayments are rounded to the nearest cent. Repayments are calculated assuming a principal and interest repayment over the loan term. Weekly and fortnightly loan repayment amounts are assumed to be a quarter and a half of the monthly repayment amount respectively.

Interest Rate, Offset Balance, and Net Offset Deposit

The interest rate, starting offset balance, and net offset deposit are considered to be the same for the duration of the loan.

Offset Account

A facility whereby:

The facility operates in conjunction with a loan; Interest is calculated daily and applied monthly in arrears; and The facility has the equivalent interest rate to that of the loan and operates in such a way that the interest payable on the loan is reduced by the amount of the interest that would have been earned on the facility.

Use of the Offset Account

The calculator compares a loan operating without an Offset Account against a loan linked with an Offset Account.

Potential Interest Saved

Calculated as to the sum of A = B less C, where:

A = Potential Interest Saved
B = Interest debited on loans where the loan stands alone.
C = Interest debited on loans where the loan has a linked Offset Account incorporating the offset balance and net offset deposit input by the user.

General

Calculations are estimates and provided for illustrative purposes only. They do not take into account any ongoing fees. The information produced by the calculator is not an indication of nor is it intended to predict future interest rates, future income, or future offset account balance. The calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product and that you should consider obtaining advice from a financial services licensee before making any financial decisions. The calculator utilises information supplied by the user and assumptions made by the calculator to provide a guide only.