Offset Mortgage Cash Savings Calculator Idle Cash vs Your Mortgage
Money sitting in a savings or chequing account earns a little and is taxed, while your mortgage charges interest on every dollar. See what that cash could save you, tax-free, if it worked against your mortgage instead — the idea behind an offset mortgage.
Offset Mortgage Cash Savings Calculator
Money sitting in a savings or chequing account earns a little and is taxed, while your mortgage charges interest on every dollar. See what that cash could save you, tax-free, if it worked against your mortgage instead — the idea behind an offset mortgage.
Mortgage — Effective Annual Rate
4.3%
Savings Rate After Tax
1.4%
Mortgage Interest the Cash Avoids per Year
$2,142
What the Cash Earns in Savings per Year
$718
Net Savings per Year
$1,424
Net Savings Over the Years Entered
$35,612
Cash Saves More Against the Mortgage
Yes
Savings Rate Needed to Match, Before Tax
6.0%
Estimates only, not a quote. A simple yearly estimate: the interest your cash avoids at your mortgage's effective annual rate (Canadian semi-annual compounding per the Bank Act), minus what the same cash would earn after tax in a savings account, multiplied by the years entered. It doesn't count compounding or your balance shrinking over time. An offset-style all-in-one account usually charges a higher, variable rate on your whole balance, which this estimate does not include; compare that separately. Interest you avoid isn't taxable income; interest a savings account pays is. Consult a licensed mortgage professional.
All calculations use Canadian semi-annual compounding per the Bank Act. These results are estimates for educational purposes only and do not constitute financial advice. Speak with a licensed mortgage broker for advice specific to your situation.
API Access for Developers & AI Agents
This calculator is available as a free JSON API. AI agents, chatbots, and developers can send mortgage data and get instant results.
POST /api/calculate/offset-mortgage-cash-savings
{
"cashInAccount": 50000
}
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Open →Estimates only, not a quote. A simple yearly estimate: the interest your cash avoids at your mortgage's effective annual rate (Canadian semi-annual compounding per the Bank Act), minus what the same cash would earn after tax in a savings account, multiplied by the years entered. It doesn't count compounding or your balance shrinking over time. An offset-style all-in-one account usually charges a higher, variable rate on your whole balance, which this estimate does not include; compare that separately. Interest you avoid isn't taxable income; interest a savings account pays is. Consult a licensed mortgage professional.