1. What is the BOQ Personal Loan Formula?

The BOQ personal loan repayment formula calculates the fixed monthly payment required to repay a loan over a specified term. This standard amortization formula is used by Bank of Queensland and most financial institutions for personal loans.

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 divided by 12)
• \( n \) — Total number of payments (loan term in months)
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula calculates the fixed payment that covers both principal and interest each month, with more going toward interest early in the loan term.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly payment helps with budgeting and comparing loan offers. It also shows the total cost of borrowing over the loan term.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q3: Are BOQ rates fixed or variable?
A: BOQ offers both fixed and variable rate personal loans. This calculator assumes a fixed rate for the entire term.

Q4: Can I make extra repayments?
A: Many BOQ personal loans allow extra repayments, which would reduce the total interest and potentially the loan term.

Q5: How accurate is this calculator?
A: This provides an estimate. Actual BOQ loan terms may vary based on credit assessment and product features.