Business Loan Calculator CommBank Australia

Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is the Business Loan Payment Formula?

The PMT formula calculates the fixed monthly payment required to repay a business loan over a specified term, including both principal and interest. This is the standard formula used by CommBank Australia and other financial institutions.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

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 accounts for compound interest over the life of the loan, ensuring each payment covers both interest and principal reduction.

3. Importance of Loan Calculation

Details: Accurate loan payment calculation helps businesses plan their finances, assess affordability, and compare different loan options from CommBank Australia.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (check current CommBank business loan rates), and loan term in years. The calculator will show monthly payments, total repayment amount, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What types of CommBank business loans does this apply to?
A: This calculator works for standard term business loans with fixed monthly payments, including CommBank's Business Term Loans and Equipment Finance.

Q2: Does this include loan fees?
A: No, this calculates principal and interest only. CommBank business loans may have additional fees (establishment fees, service fees) not included here.

Q3: What's the current business loan rate at CommBank?
A: Rates vary (typically 5-15% p.a.) based on loan type, amount, term, and your business profile. Check CommBank's website for current rates.

Q4: Can I get a better rate?
A: Rates may be negotiable based on your business financials, security offered, and relationship with CommBank.

Q5: How accurate is this calculator?
A: This provides estimates only. For exact figures, request a formal quote from CommBank Australia.