Home Loan Redraw & Offset Withdrawal Calculator
How to Use the Redraw & Offset Withdrawal Calculator
Enter your current home loan balance, interest rate (% p.a.), remaining loan term (years), your current age, and the proposed withdrawal amount ($) from your offset account or redraw facility.
Why a $45,000 Redraw Withdrawal Actually Costs Over $98,000
When you withdraw $45,000 from your offset or redraw facility without increasing your monthly repayments, you lose 6.19% p.a. compounding daily interest savings for the entire remaining life of your mortgage.
Worked Australian Example: $45,000 Car Withdrawal on a $450,000 Loan at 6.19% p.a.
Worked Example: On a $450,000 mortgage at 6.19% p.a. with 22 years remaining, withdrawing $45,000 for a vehicle upgrade adds $53,420 in extra compounding bank interest (bringing the true cost of the $45,000 withdrawal to $98,420) and extends your mortgage payoff age by nearly 4 years.
Frequently Asked Questions About Offset & Redraw Withdrawals
Read our full guide comparing offset accounts and redraw facilities at /guides/offset-account-vs-redraw-facility-australia.
Does withdrawing cash from my offset account increase my interest the same as redrawing?
Yes. Removing $45,000 from a 100% offset account increases the net balance on which daily interest is calculated by $45,000—the exact same interest impact as redrawing $45,000 from your loan.