Division 7A minimum repayment calculator

If you owe money to your private company under a Division 7A loan agreement, you must repay at least the minimum each year by 30 June, or the shortfall is treated as a dividend. Enter the loan balance and the years left on the loan to see this year’s minimum at the ATO benchmark rate.

How the minimum is worked out

The minimum yearly repayment is the opening balance multiplied by the benchmark rate, divided by 1 − (1 + rate)⁻ⁿ, where n is the number of years left on the term. The ATO sets a new benchmark rate each July, so the minimum is recalculated every year on the balance at 1 July.

Repaying and then borrowing the money straight back can be disregarded, so repayments need to be genuine. Several loans may also need to be combined, and loans made in the current year only need their first repayment the following year.

General information only. This calculator assumes a single complying loan agreement and does not take your circumstances into account. See the ATO’s guidance on Division 7A loans ↗, or talk to us before relying on a figure.