Cash vs Car Finance vs Offset Calculator
Compare paying cash for a car with standalone finance and the mortgage-offset opportunity cost of using cash.
Your assumptions
Comparison
Enter your figures and calculate. Results are estimates, not a quote or credit decision.
What does taking car money out of offset actually cost?
Removing $40,000 from a fully effective offset at 6% initially adds about $2,400 a year to mortgage interest. This calculator multiplies that starting cost by your comparison horizon. It does not amortise a changing offset balance or assume that car-loan repayments would otherwise have accumulated in offset.
The car-finance cost covers its entered full loan term. If your offset horizon differs, those displayed costs are not a complete same-period comparison. Use a common horizon as a starting point, then consider debt remaining, deposit and cash flow.
See the worked car loan versus mortgage-offset comparison. For a lease quote, use the novated lease quote decoder.
How to use the result
The lost offset saving is a simple sensitivity using the mortgage rate and horizon; actual mortgage balances decline over time.
Retaining cash can have value, but that value should be weighed against real finance cost.
Read the calculation methodology and assumptions.
If the numbers justify a closer look, send the transaction details for an initial broker review.
Compare car-finance optionsGeneral information only. Calculator results are estimates and do not account for every fee, tax outcome, contract feature or lender rule. Finance approval and pricing are subject to lender assessment.