Div 7A Loan Calculator

Minimum yearly repayment on a complying Division 7A loan from a private company to a shareholder or associate, to avoid the loan being treated as an unfranked deemed dividend.

Missing the minimum yearly repayment on a Div 7A loan causes the shortfall to be treated as an unfranked dividend, taxable to the borrower with no franking credits attached. This calculator estimates the repayment only — it doesn't check loan agreement validity, distributable surplus limits, or other Div 7A conditions.

FY 2025–26 (8.37%)

FY 2026–27 (8.77%, current)

Rates & assumptions used in this calculator

Div 7A benchmark interest rate: 8.77% for the income year ending 30 June 2027 (FY2026-27), based on the RBA's indicator variable housing loan rate published just before the start of the income year. FY2025-26 (year ended 30 June 2026) is 8.37%.
The benchmark rate for an income year is locked in at the start of that year and doesn't change even if the RBA's published rate moves during the year.
Loan term: 7 years for an unsecured loan, or up to 25 years if secured by a registered mortgage over real property with sufficient value — selectable below.
Minimum yearly repayment is calculated as a standard amortising loan repayment (principal and interest) over the remaining loan term at the benchmark rate, due by the company's lodgement day for the relevant income year (generally the earlier of the actual lodgement date or the due date).
This tool models a single loan drawn down in full at the start of the term with no additional draw-downs — real loans with multiple draw-downs in different years are more complex.

Sourced from the ATO's Division 7A benchmark interest rate page as at July 2026. Verify the current rate and loan agreement requirements at ato.gov.au before relying on this.

Loan details

$200,000 · 7-year unsecured

Loan amount

Loan type

7-year unsecured

25-year secured

Year of the loan

Year 1 = the year the loan was made; repayments start the year after

year

Repayment schedule (first 7 years)

Year	Opening balance	Interest	Repayment	Closing balance

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ATO-compliant Loan terms verified Tax-efficient

This is a general estimate only, not tax advice. It doesn't check whether the loan agreement meets Div 7A's formal requirements, the company's distributable surplus, or other exceptions. Refer to a registered tax agent to confirm compliance before relying on this repayment figure.