Both loans use monthly principal-and-interest repayments over the same remaining term. Rates, offset balances, extra repayments and fees stay constant. Interest is calculated monthly on the outstanding balance less the offset balance, down to $0, using the annual rate divided by 12; lender daily calculations and rounding may differ.
Extra repayments reduce principal but are excluded from costs, just like minimum principal repayments. The average monthly outlay includes them. Offset cash remains your money, so it is not included in loan balances or costs; any foregone savings interest is not modelled.
Upfront and switching fees are paid from cash at the start, monthly fees at each month end, and annual fees at months 12, 24 and so on while the loan remains open. Annual fees are not prorated. Fees are not added to the loan balance.
Costs compare interest and fees, excluding principal repayments. Outstanding balances are shown separately. Break-even is checked monthly across the full term, including future annual fees. Identical costs break even from the start.
No redraw, interest-only periods, cashback, changing fixed or introductory rates, or future exit costs are modelled. Enter any current fixed-rate break fee using a lender quote. Compare features and rate changes separately.