1. What is the CBA Personal Loan Repayment Formula?

The CBA Personal Loan Repayment Formula calculates fixed monthly payments for Commonwealth Bank personal loans. It's based on standard amortization mathematics that ensures equal payments throughout the loan term.

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)
• \( n \) — Total number of payments (months)
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula calculates the fixed payment required to fully amortize a loan over its term, accounting for both principal and interest.

3. Importance of Loan Repayment Calculation

Details: Understanding your exact monthly payment helps with budgeting, comparing loan offers, and planning your finances before committing to a loan.

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

Q2: What's the typical CBA personal loan rate?
A: Rates vary (6.99%-19.99% p.a. as of 2024) based on amount, term, and creditworthiness.

Q3: Can I pay weekly/fortnightly instead?
A: Yes, but this calculator shows monthly payments. Divide monthly by 4 for weekly or 2 for fortnightly approximations.

Q4: How accurate is this calculator?
A: It provides theoretical payments. Actual CBA quotes may differ slightly due to rounding or specific bank policies.

Q5: What's the maximum CBA personal loan term?
A: Typically up to 7 years (84 months) for unsecured personal loans.