1. What is the ANZ Auto Loan Repayment Formula?

The ANZ Auto Loan Repayment formula calculates the fixed monthly payment required to repay a car loan over a specified term. It accounts for the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula calculates the fixed payment needed to fully amortize the loan over its term, accounting for compound interest.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly payment helps with budgeting and comparing different loan options. It shows the true cost of borrowing when interest is included.

4. Using the Calculator

Tips: Enter the loan amount in AUD, the annual interest rate (without % sign), and the loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include ANZ's fees and charges?
A: This calculates principal and interest only. ANZ may charge additional fees not included in this calculation.

Q2: How does the interest rate affect payments?
A: Higher rates increase monthly payments. A 1% rate increase can significantly impact the total repayment amount.

Q3: What's better - shorter or longer loan terms?
A: Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total interest paid.

Q4: Can I make extra repayments?
A: ANZ typically allows extra repayments on variable rate loans, which can reduce total interest and loan term.

Q5: Is this calculation accurate for all ANZ car loans?
A: This provides an estimate. Actual payments may vary based on specific loan products, fees, and your credit profile.