1. What is the CommBank Personal Loan Borrowing Calculator?

This calculator helps you determine how much you can borrow from Commonwealth Bank Australia for a personal loan based on your affordable monthly payment, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the borrowing power formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( PMT \) — Affordable monthly payment (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months

Explanation: The equation calculates the present value of a series of future payments at a given interest rate.

3. Importance of Borrowing Power Calculation

Details: Knowing your borrowing power helps you plan your finances, understand loan affordability, and negotiate better terms with lenders.

4. Using the Calculator

Tips: Enter your comfortable monthly payment amount, current interest rate offer from CommBank, and desired loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the maximum loan term for CommBank personal loans?
A: CommBank typically offers personal loan terms from 1 to 7 years (12 to 84 months).

Q2: What interest rates does CommBank offer?
A: Rates vary (typically 6.99%-19.99% p.a.) based on credit score, loan amount, and term. Check CommBank's website for current rates.

Q3: Are there other fees to consider?
A: CommBank may charge establishment fees ($0-$250) and monthly fees ($0-$10). These aren't included in this calculation.

Q4: How accurate is this calculator?
A: This provides an estimate. Actual loan amounts may vary based on credit assessment and bank policies.

Q5: Can I use this for other types of loans?
A: The formula works for any fixed-rate loan, but terms and rates may differ for car loans, home loans, etc.