Family Loan Repayment Calculator by Chipkie
Planning a loan between friends or family members? Standard bank calculators often fail because they assume high interest rates and rigid terms.
The Chipkie Family Loan Calculator is designed specifically for private lending.
Whether you are charging commercial interest or providing an interest-free loan (0% interest) to help a child enter the property market, this tool will calculate your exact weekly or monthly repayments instantly.
Family Loan Calculator
See how much you save with the “Bank of Mum & Dad”
Total Interest Payable
$0.00
Your Repayment
$0.00
🎉 Smart Move!
You save $0 compared to a standard bank loan.
How to use this calculator
-
Loan Amount: Enter the total principal amount being lent (e.g., $50,000).
-
Interest Rate: Enter the agreed annual interest rate. If this is a “Bank of Mum and Dad” gift or soft loan, simply enter 0.
-
Loan Term: Enter the total number of months the borrower has to pay the money back (e.g., 60 months for a 5-year loan).
Why do I need to calculate repayments for a family loan?
Even if you trust your family member implicitly, a verbal agreement often leads to confusion. “Pay me back when you can” is the most dangerous phrase in family finance.
Using a calculator to set a fixed repayment amount creates:
-
Discipline: The borrower can budget for the expense.
-
Transparency: Both parties know exactly when the debt will be cleared.
-
Fairness: If there are siblings, documenting the loan ensures no accusations of favoritism later.
Can I lend money to family at 0% interest?
Yes. In Australia, you are generally free to lend money to family members at whatever interest rate you choose, including 0%. This is often called an interest-free loan.
However, if you do charge interest, that interest is considered taxable income by the ATO and must be declared on your tax return. The borrower generally cannot claim a tax deduction for the interest unless the loan is used for income-producing purposes (like buying an investment property).
> Note: Chipkie does not provide tax advice. Please consult a qualified accountant regarding your specific situation.
Turning these numbers into a legal agreement
Calculating the repayment is step one. Step two is documenting it.
Without a written agreement, a transfer of money can be mistaken for a gift by the courts (in family law disputes) or by the ATO. A formal Family Loan Agreement protects both the lender’s capital and the borrower’s relationship.
Chipkie is free for everyone!
At Chipkie, it’s our mission to see your communities flourish through uncertain times. And as a country renowned for looking out for our mates, we want to make it easier to lend a hand when the people we love need it most. That’s why it’s 100% free to join, no hidden catches, no hidden fee’s. Just good Karma.
