mortgage calculator

Would An Offset Mortgage Work For You?

Our offset mortgage calculator will show you how offsetting savings could reduce the total interest due on your mortgage and how much money can be saved when comparing an offset mortgage with a standard mortgage.

An offset mortgage allows you to use savings to reduce the amount of mortgage interest you're charged over the term of your mortgage. Read our guide to offset mortgages for further information alongside our offset mortgage calculator to work out whether an offset mortgage could be the right option for you.

Offset Mortgage Calculator

1 Enter your current or expected mortgage amount and term

2 Enter the details of your savings, both current and any monthly amount you plan to add. Enter How long you want to compare your offset vs a standard mortgage. It is best to compare over the product period i.e 2 years if you are looking at a 2 year tracker rate for example.

3 Enter the interest rate and any fees payable for a standard mortgage

3 Enter the interest rate and any fees payable for an offset mortgage

3 Calculate!

How big is your mortgage?


How much do you have in savings?


Using a standard mortgage


Using an offset mortgage


Will you slash the interest you pay?

Here's how much offsetting your savings could save on your monthly and annual mortgage repayments, and by how long it could reduce the term of your mortgage (assuming rates stay the same).

The tables below factor in any interest lost on your savings to calculate the true cost over each year. Offsets generally win over the long-term (see graph), but you could save more by going for a cheaper short-term standard deal and switching to another when the term is up.

Note: Those with a relatively small sum in savings compared with their mortgage balance will probably not find offset the best option. Higher-rate taxpayers who earn less from their savings after tax is deducted may be best off with an offset, compared with the top paying savings account. They also suit those who'd like to overpay but don't want to lose access to their savings.

Standard mortgage + savings vs offset mortgage

Monthly repayment

In first year

Interest cost
Interest earned on savings
Net interest cost

Total costs over 3 years

Interest cost
Interest earned on savings
Net interest cost

Over full term*

Interest cost
Interest earned on savings
Net interest cost

Net interest cost per year

This illustrates how your outstanding mortgage balance will decrease over the term of your loan. This does not account for interest rate changes or other fees such as early repayment charges.

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