CommBank Personal Loan Calculator Repayments Monthly

Loan Payment Formula:

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

Monthly Payment (PMT):

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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. This is the standard formula used by CommBank and most financial institutions for fixed-rate personal loans.

2. How Does the Calculator Work?

The calculator uses the 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 both principal repayment and interest charges, calculating a fixed payment that fully amortizes the loan over the specified term.

3. Importance of Loan Payment Calculation

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

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator include loan fees?
A: No, this calculates principal and interest only. CommBank personal loans may have establishment fees and other charges.

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

Q3: Can I make extra repayments?
A: CommBank usually allows extra repayments on variable rate loans, but fixed rate loans may have restrictions.

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

Q5: Is this calculator accurate for all loan types?
A: This works for standard fixed-rate personal loans. Credit cards, lines of credit, or adjustable-rate loans use different calculations.