Home Back

Car Loan Calculator CommBank

Car Loan Payment Formula:

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

AUD
%
years

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is the Car Loan Payment Formula?

The car loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. This is the standard formula used by Commonwealth Bank and most financial institutions for fixed-rate loans.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

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

Where:

Explanation: The formula accounts for both principal repayment and interest charges, with payments structured so the loan is fully repaid by the end of the term.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also helps compare different loan offers.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate as a percentage (e.g., 5.5 for 5.5%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include CommBank's fees?
A: This calculates principal and interest only. Additional fees may apply - check with CommBank for current fee structures.

Q2: What's a typical car loan rate at CommBank?
A: Rates vary based on creditworthiness, loan term, and vehicle. Check CommBank's website for current rates.

Q3: Can I make extra repayments?
A: CommBank generally allows extra repayments on variable rate loans, but fixed rate loans may have restrictions.

Q4: 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.

Q5: Is this calculator accurate for all loans?
A: This works for standard fixed-rate loans. Balloon payments or variable rates would require different calculations.

Car Loan Calculator CommBank© - All Rights Reserved 2025