Loading
Work out the minimum yearly repayment on an existing complying private-company loan.
Published benchmark rates through 2026–27. For income years ending on 30 June. The tool does not decide whether Division 7A applies.
Enter the unpaid principal for the selected year. For the first repayment year, use the balance after repayments before the company's lodgment day. Do not count those repayments again. For the loan-made year, enter the original loan amount.
Use the actual term in the agreement. The remaining term is worked out from the loan year. Refinancing and changed security are outside this tool.
Enter the opening balance and check the loan details. This tool assumes an existing complying loan and an income year ending on 30 June.
ATO calculator and decision tool for dated repayments and whether Division 7A applies.
Take an unsecured loan made in 2024–25 with an agreed term of 7 years. Its adjusted opening principal for 2025–26 is $100,000.00.
At that year's benchmark rate of 8.37%, the engine calculates a minimum of $19,450.97. If paid at year-end, it comprises $8,370.00 interest and $11,080.97 principal. The closing balance is $88,919.03.
This is an illustration of the repayment formula for a complying loan. It does not assess the agreement, security or tax position.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
What can move this result
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.
The minimum is recalculated each income year. Section 109E uses the opening principal, that year's benchmark rate and the remaining agreed term. A changed benchmark rate changes the minimum even when the loan agreement and balance have not changed.
Minimum = opening principal × rate ÷ [1 − (1 + rate)−remaining years]
The first minimum falls in the income year after the loan was made. For that first calculation, repayments before the company's lodgment day reduce the opening principal. Enter the adjusted amount, even if a repayment was made after the loan year ended.
The minimum and the interest are different calculations. Interest follows the balance through the year. The breakdown treats the adjusted opening principal as outstanding for the full year and assumes only the minimum is paid at year-end. Other payments, including pre-lodgment repayments made during this year, mean actual interest and closing principal can differ. The ATO calculator accepts payment dates and amounts.
General information only. Division 7A has strict rules. A registered tax agent needs to check the loan agreement and its repayments.
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.
This is a minimum-repayment calculator for an existing complying direct loan. It does not classify payments, trust entitlements or debt forgiveness under Division 7A.
A written agreement, benchmark interest and an allowed term are part of the complying-loan rules. The security choice here is an input, not a finding that a mortgage qualifies.
Division 7A is a set of tax rules for benefits from private companies to shareholders and their associates. Payments, loans and forgiven debts can be treated as unfranked dividends. This calculator assumes an existing complying loan; it does not decide whether a transaction is caught. See the ATO Division 7A decision tool.
Section 109E uses the unpaid opening principal multiplied by the year's benchmark rate, divided by one minus (one plus that rate) raised to the negative remaining term. The rate is expressed as a decimal. The remaining term comes from the actual agreed term and elapsed income years. In the first repayment year, the opening principal must reflect repayments before the company's lodgment day. See ATO loan calculations and section 109E.
The published benchmark rate for 2026–27 is 8.77%. The calculator uses the rate for the selected income year and stops its schedule when the next rate is not published. See the ATO benchmark-rate table.
The ordinary maximum is 7 years. The 25-year maximum requires the whole loan to be secured by a registered mortgage over real property. When the loan is first made, property market value less prior-ranking secured liabilities must be at least 110% of the loan. A shorter agreed term still governs the repayment calculation. Refinancing and changed security have additional rules and are outside this tool. See ATO loan guidance and section 109N.
If the loan remains outstanding at year-end and the countable repayments are below the minimum, the shortfall is ordinarily treated as an unfranked deemed dividend. The company's distributable surplus can limit the amount and statutory relief may apply. The calculator does not assess those limits or calculate personal tax. See ATO loan guidance and sections 109E and 109Y.
An actual payment or effective set-off against an amount the company owes can reduce a loan. The ATO describes offsetting a dividend entitlement; the declared dividend has its own tax treatment. Section 109R recognises genuine set-offs against payable dividends and specified employment-related payments. Merely declaring a dividend or recording gross salary does not automatically repay the loan. PAYG withholding and the separate tax consequences are outside this calculator. See ATO borrower guidance and section 109R.
There is no statutory minimum yearly repayment in the income year the loan is made. The first minimum is due by 30 June of the following income year for a company with an ordinary income year. Repayments before the company's lodgment day reduce the opening principal for that first calculation; they are not counted again towards the first minimum. Lodgment day is the earlier of actual lodgment and the due date. Contractual interest in the loan-made year is a separate matter. See ATO first-year loan guidance.
For a comparison of contracting income, use the Day Rate Calculator. Its company column does not calculate shareholder-loan repayments.