1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates your fixed monthly payment for a car loan. It considers the principal amount, interest rate, and loan term to determine your repayment amount.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate / 12)
• \( n \) — Loan term in months
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula accounts for both principal and interest components of your loan payment, with more interest paid early in the loan term.

3. Commonwealth Bank Car Loan Details

Details: Commonwealth Bank offers car loans with typical interest rates between 5.99% to 8.99% p.a. Loan terms usually range from 1 to 7 years.

4. Using the Calculator

Tips: Enter the loan amount in AUD, select an interest rate within CBA's typical range (5.99-8.99%), and choose your loan term in years. The calculator will show your estimated monthly repayment.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for CBA car loans?
A: Rates typically range from 5.99% to 8.99% p.a., depending on your credit profile and loan terms.

Q2: Are there any additional fees?
A: CBA may charge establishment fees and monthly service fees. Check their current fee schedule for exact amounts.

Q3: Can I make extra repayments?
A: Yes, CBA generally allows extra repayments on their car loans, which can reduce your total interest paid.

Q4: What is the maximum loan term available?
A: CBA typically offers car loan terms up to 7 years for new cars and 5 years for used cars.

Q5: Is the interest rate fixed or variable?
A: CBA offers both fixed and variable rate options for car loans. This calculator assumes a fixed rate.