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Franking Credit Calculator Australia

Franking comparison — estimate after‑tax outcomes for franked dividends vs savings accounts. Includes reinvestment scenarios.

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Professional Franking Credit Calculator for Australian Investors

Compare franked dividend returns against savings accounts with our comprehensive calculator. Understand how franking credits can improve your after-tax returns and the impact of different reinvestment strategies on your wealth accumulation.

Features include: after-tax return calculations, reinvestment scenario modeling, franking credit impact analysis, and compound growth projections. Perfect for share investors, dividend-focused portfolios, and anyone considering franked investments in Australia.

Explore our other calculators: Investment Loan Calculator for property investment loans, and Property Ownership Cost Calculator for property expenses.

Inputs
Invested in AU shares (AUD) i
Total amount invested in Australian shares/ETFs that pay dividends.
Dividend yield (% p.a.) i
Expected cash dividend as a percentage of invested amount.
Franking percentage (%) i
Share of dividend that is franked. 100% = fully franked at a 30% company tax rate.
Savings account rate (% p.a.) i
Before‑tax headline rate for a savings account.
Marginal tax rate i
Used to tax savings interest and the grossed‑up dividend.
Reinvest dividends (stocks) i
Controls how stock dividends are treated: Include refunds = reinvest dividend and any tax refund; Exclude refunds = reinvest dividend only; No – take cash = do not reinvest.
Reinvest interest (savings) i
Compound = after‑tax interest is added to the savings balance; No – take interest = interest is paid out and not compounded.
Apply capital growth to stocks i
When enabled, the stock principal grows each year by the selected capital growth rate before dividends are calculated. This can significantly change compounding outcomes.
Capital growth rate (% p.a.) i
Annual capital growth applied to stock principal before reinvestment cash is added.
Projection years i
Time horizon for comparison (no capital growth assumed).
Detailed breakdown
Notes
  • Franking credit mechanics (simplified): net tax on dividend = (dividend + credit) × MTR − credit. Refund if negative; top‑up if positive.
  • Company tax rate assumed 30% to determine the maximum franking credit. Franking percentage scales the credit accordingly.
  • Savings interest is taxable at your marginal tax rate.
  • Reinvestment: stocks can reinvest after‑tax cash including/excluding refunds; savings can compound interest.

Franking Credit Investment Strategies in Australia

Understanding Franking Credits

Franking credits represent tax already paid by companies on their profits. When you receive franked dividends, you get a credit for this tax, which can reduce your personal tax liability or generate refunds.

Tax-Effective Investing

Franking credits make Australian shares particularly attractive for investors in lower tax brackets. Our calculator shows how these credits can significantly improve your after-tax returns.

Reinvestment Strategies

Dividend reinvestment can accelerate wealth accumulation through compound growth. Our tool helps you compare reinvestment vs cash strategies and their long-term impact.