Franking Credits Calculator Explained for Australians
Calculates franking credits and the tax on Australian dividends. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Franking Credits Calculator.
Why it matters
Australians save and invest through bank accounts, term deposits, shares, ETFs and property. Interest and dividends are taxable, franking credits can offset tax on dividends, and inflation steadily reduces the value of money that isn’t growing.
What you need to enter
The calculator asks for 3 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Cash dividend ($) | 700 |
| Franking (%) | 100 |
| Your tax rate (%) | 32 |
The formula
Franking credit = dividend × franking % × 30 ÷ 70. Tax = (dividend + credit) × your rate − credit.
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Net dividend after tax | $680.00 |
| Franking credit | $300.00 |
| Grossed-up dividend | $1,000.00 |
| Extra tax to pay | $20.00 |
The headline figure is $680.00 (net dividend after tax). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the net dividend after tax changes with cash dividend
The table below keeps every other input at the example value and moves only “Cash dividend ($)” up and down by 10% and 20%. It shows how sensitive the net dividend after tax is to that one figure.
| Cash dividend ($) | Net dividend after tax |
|---|---|
| 560 | $544.00 |
| 630 | $612.00 |
| 700 | $680.00 |
| 770 | $748.00 |
| 840 | $816.00 |
At 560 the result is $544.00; at 840 it is $816.00. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
If your tax rate is below 30%, excess franking credits are refunded to you.
Keep going
Before relying on the number, read Franking Credits Mistakes Australians Make and How to Avoid Them. You might also find these guides useful:
- How the Share Profit Calculator Works (With a Worked Example)
- ROI Calculator: Formula, Example and What the Result Means
- Using a CAGR Calculator in Australia: A Step-by-Step Guide
Frequently asked questions
- Are investment returns guaranteed?
- Only some products, such as term deposits, have fixed rates. Share and fund returns vary and can be negative.
- Is my bank deposit protected?
- The Financial Claims Scheme guarantees deposits up to $250,000 per account holder per authorised bank.
- Is this investment advice?
- No. The calculators provide general information only.
Run your own numbers in the Franking Credits Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.