Paying it off
Offset account
An offset balance is not an investment return, but it behaves like one — tax free, at the loan’s own rate. This puts a number on the balance a client is already holding.
Your numbers
600,000
40,000
Result
Interest saved
$181,770
- Time taken off the loan
- 4 years 1 month
- First-year interest saved
- $2,500
- Equivalent after-tax return
- 6.25%
An offset saving is not taxed, so an investment has to earn more than this after tax — more again before tax — to be worth more.
- Interest, no offset$729,949
- Interest, with offset$548,180
What this does not tell you · It does not account for the package or account fee most offset products carry, which on a small balance can cost more than the offset saves.
Put this on your own site
This calculator ships as part of a Finance OS build, on your brand and your booking link, so an enquiry that starts with a number ends in your calendar rather than on a bank’s website.