Compare Simple Interest vs Compound Interest vs Division 7A — with Excel & PDF export
Loan Details
2025–26 ATO Div 7A benchmark rate is 8.77%
Division 7A — ATO Benchmark Rate: Loans from a private company to shareholders/associates must charge at least the ATO benchmark rate (2025–26: 8.77%) to avoid being deemed an unfranked dividend. Minimum annual repayments apply. Maximum term: 7 years (unsecured) or 25 years (secured over real property). If minimum repayments are not met, the shortfall is treated as a dividend.
Method Comparison
ℹ️ Same repayment applied to all methods — using the Div 7A annuity minimum repayment (/yr) so the comparison is on equal footing. Differences reflect how each method calculates and applies interest.
Repayment Schedule
Important Disclaimer: This A One Accountants calculator is provided by A One Accountants for general informational purposes only. Division 7A benchmark rates are set annually by the ATO and the rate shown (8.77%) applies to 2025–26 — verify current rates at ato.gov.au. Minimum repayment amounts under Div 7A must be calculated in accordance with section 109N of the Income Tax Assessment Act 1936. This tool is for estimation purposes only and does not constitute tax or financial advice. A One Accountants Pty Ltd accepts no liability for any reliance on this calculator.