Division 7A Minimum Repayment Calculator
Took money out of your company as a loan? Work out the minimum yearly repayment and the interest portion you need to pay before lodgement day, so the loan is not treated as a deemed dividend in your hands.
- Interest for the year$0
- Principal component$0
- Closing balance after MYR$0
- Minimum repayment due$0
Enter the loan balance and term to see your minimum repayment.
Behind on repayments, or not sure the loan is complying? We can fix the agreement and lodge it right.
Sort out a Div 7A loan →General information only, current for the 2025-26 financial year. This calculator uses the standard Division 7A amortisation formula and the 8.37% benchmark rate, and ignores the distributable surplus cap, lodgement-day timing, interposed entities, prior shortfalls and the 25-year secured loan conditions, so it is a guide, not personal tax advice. For a position you can lodge, talk to us.
A Few Things This Calculator Assumes
What is the minimum yearly repayment?
When a private company lends money to a shareholder or associate, Division 7A treats that loan as a deemed dividend unless it is put on a complying loan agreement. To keep it complying, you have to repay a minimum amount each year. We calculate it the way the ATO does: the opening balance amortised over the years left in the term at the benchmark interest rate, so the loan is fully repaid by the end of its maximum term.
Where does the benchmark rate come from?
The ATO publishes a Division 7A benchmark interest rate each income year, based on the Reserve Bank standard variable rate for owner-occupier housing loans. For 2025-26 it is 8.37%. The minimum repayment must use the benchmark rate for the current year, so we default to it and let you change it if you are checking another year.
What happens if I miss the repayment?
If you do not pay the full minimum yearly repayment by the earlier of your company's lodgement day and its lodgement due date, the shortfall can be treated as an unfranked deemed dividend and taxed in your hands at your marginal rate. There is some relief available where the shortfall is due to circumstances beyond your control, but it is discretionary, so the safer path is to pay on time. This is exactly the kind of timing we keep an eye on for clients.
Unsecured or secured: which term applies?
Most Division 7A loans are unsecured and run for a maximum of 7 years. A 25-year term is only available where the loan is secured by a registered mortgage over real property and the loan was at least 110% covered by the property value when it was made. Pick the type that matches your written agreement, then enter the years that are actually left on it.
Keep Your Company Loan Out Of Trouble
Book a 30-minute call and we'll review your loan account, put a complying agreement in place, and make sure every minimum repayment lands before the deadline. No deemed dividend surprises at tax time.
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