Comm Personal Loan Calculator

Personal 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 Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. It's used by Commonwealth Bank and other financial institutions to determine loan repayments.

2. How Does the Calculator Work?

The calculator uses the standard loan payment 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 years × 12)
\( PMT \) — Monthly payment amount (AUD)

Explanation: The formula accounts for compound interest over the life of the loan, ensuring each payment covers both principal and interest.

3. Importance of Loan Calculation

Details: Understanding your monthly payments helps with budgeting and ensures you can comfortably afford the loan. It also helps compare different loan offers.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (without the % sign), and loan term in years. The calculator will show your estimated monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: Does this include Commonwealth Bank fees?
A: This calculation doesn't include any establishment fees or ongoing fees that may apply to Commonwealth Bank personal loans.

Q2: What's a typical interest rate for CommBank personal loans?
A: Rates vary (typically 6.99%-19.99% p.a.) depending on loan amount, term, and your creditworthiness.

Q3: Can I make extra repayments?
A: Commonwealth Bank usually allows extra repayments on variable rate personal loans, which would reduce your total interest.

Q4: How does loan term affect payments?
A: Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total interest.

Q5: Is this calculation accurate for all loan types?
A: This is for standard fixed-rate personal loans. Other products like lines of credit may use different calculations.