Offset Mortgage Calculator

Calculate how your savings can reduce your mortgage interest and repayment time

Outstanding Mortgage Balance (£)

Mortgage Interest Rate (%)

Remaining Term (Years)

Savings/Current Account Balance (£) Amount to offset against mortgage

Savings Interest Rate (% p.a.) Interest you'd earn on savings separately

Tax Rate on Savings (%)

Annual Interest Savings

£0

Time Saved

0 years

Total Interest Saved

£0

How Your Offset Works

Mortgage Balance

£250,000

Savings Offset

£50,000

Interest Charged On

£200,000

Comparison: Offset vs Separate Savings

	Without Offset	With Offset	Benefit
Monthly Payment	£0	£0	£0
Interest Charged (Annual)	£0	£0	£0
Savings Interest (After Tax)	£0	£0 (No interest needed)	N/A
Net Annual Benefit	-	-	£0

Understanding Offset Mortgages

How It Works

Your savings balance reduces the mortgage balance for interest calculation
You keep instant access to your savings
No interest earned on offset savings
Typically reduces mortgage term and total interest

Key Benefits

Tax-efficient way to use savings
Flexible access to funds when needed
Can significantly reduce mortgage term
Higher rate taxpayers benefit most

Related: Compare with our overpayment calculator and read about mortgage reduction strategies.