Offset mortgage interest saving calculator UK
Estimate initial interest avoided by offsetting eligible savings against a mortgage. Check the formula, worked example and limits before using your own figures.
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Initial annualised interest reduction
Inputs changed. Select Calculate result to update your estimate.
Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Initial balance illustration only. Actual offset terms, changing balances and interest lost on savings affect the comparison.
How the offset mortgage interest saving calculator uk works
Initial annualised interest reduction = min(balance, offset savings) × rate.
Data basis: mathematical formula using your inputs. Example prices and rates are illustrative, not current market quotes.
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Worked example: offset mortgage interest saving
This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.
- Mortgage balance (£)
- 200,000
- Eligible offset savings (£)
- 20,000
- Nominal mortgage interest (%)
- 5
Initial annualised interest reduction: £1,000.00
Initial annualised interest reduction = min(balance, offset savings) × rate.
Offset mortgage interest saving: questions answered
What does the offset mortgage interest saving calculation include?
Initial annualised interest reduction = min(balance, offset savings) × rate. Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Initial balance illustration only. Actual offset terms, changing balances and interest lost on savings affect the comparison.
Using your result
Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.
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