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CommBank Personal Loan Borrowing Calculator Payment

Payment Formula:

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

AUD
%
years

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1. What is the PMT Formula?

The PMT formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. It's the standard calculation used for CommBank personal loans and most other installment loans.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

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

Where:

Explanation: The formula accounts for compound interest over the life of the loan to determine a fixed payment amount that will pay off the loan exactly by the end of the term.

3. Importance of Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also allows comparison between different loan options.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (without the % sign), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rate does CommBank charge for personal loans?
A: Rates vary (typically 6.99%-19.99% p.a.) depending on loan purpose, amount, term, and your creditworthiness.

Q2: Are there any fees not included in this calculation?
A: Yes, CommBank may charge establishment fees ($150-$250) and monthly service fees ($5-$10) in addition to interest.

Q3: Can I make extra repayments?
A: CommBank personal loans typically allow extra repayments without penalty, which can reduce total interest.

Q4: How accurate is this calculator?
A: This shows the principal+interest payment. Your actual payment may differ slightly due to fees and rounding.

Q5: What's the maximum personal loan amount from CommBank?
A: Typically up to $50,000 for unsecured loans, with terms from 1-7 years.

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