Australian Family Loan Calculator

It estimates the repayment for an Australian family or friend loan using the amount, annual interest rate, term, repayment frequency and start date you enter. It also shows the estimated number of payments, total interest, total repaid, finish date, balance charts and a full repayment schedule.

The calculator uses a reducing-balance method. Each scheduled payment first covers interest on the outstanding balance and the rest reduces the principal. It recalculates for weekly, fortnightly or monthly repayments so the selected frequency is reflected in the schedule.

Yes. Enter an annual interest rate of 0% to model an interest-free loan. The result will divide the principal across the scheduled repayments with no interest added. An interest-free estimate is not a decision about tax, Centrelink or enforceability, so check any rules relevant to your circumstances.

There is no single ATO benchmark rate that applies to every ordinary private loan between individuals. Do not apply that answer universally: a loan involving a private company, shareholder or associate may fall under Division 7A, which has its own benchmark-rate and repayment requirements. Employer, trust, business and cross-border arrangements can also need specialist advice.

No. This tool estimates ordinary reducing-balance family-loan repayments. The ATO’s Division 7A calculator uses different inputs and rules to work out minimum yearly repayments and interest for qualifying private-company loans. Use the ATO tool and obtain tax advice if company money is involved.

Interest received by an Australian resident is generally income that must be considered in the lender’s tax return. The correct timing and treatment depend on the arrangement and the lender’s circumstances. Keep the agreement and payment records and ask a registered tax agent if you are unsure.

Not simply because interest is charged. Deductibility depends on how the borrowed money is used and whether the expense has the required connection with earning assessable income. Interest connected with private or domestic spending is generally not deductible. Get tax advice for investment, business or mixed-purpose use.

Yes. Services Australia says debts owed to you can form part of the Age Pension assets test, and financial assets can be subject to deeming. The effect depends on the person’s full income, assets and circumstances. Tell Services Australia about relevant changes and check its current rules.

No. A gift is not intended to be repaid; a loan creates an obligation to repay. For Services Australia purposes, gifts above the gifting free areas can continue to affect income and assets tests, while a loan can remain an asset of the lender. Forgiving an existing loan may also be treated as gifting. Record the parties’ real intention and follow the agreed repayment plan.

Yes, particularly where the amount or term is significant. Record the parties, principal, interest rate or 0% rate, repayment frequency, start date, term, variation process and what happens if a repayment is missed. Moneysmart recommends putting a loan in writing, including how much will be repaid and when.

Choose a frequency both parties can realistically follow. Weekly or fortnightly may align with wages, while monthly may be easier to administer. Compare the schedules rather than assuming one frequency is automatically better; changing frequency changes the timing and can change the total interest estimate.

Yes. The calculator’s “Create this loan with Chipkie” button carries the amount, rate, term and repayment frequency into loan setup. Review every detail with the other party before confirming it. You can then use Chipkie to record the arrangement and choose any optional agreement or payment features that suit you.