Commonwealth Car Loan Repayment Calculator

Loan Payment Formula:

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

Monthly Payment (PMT):

Total Interest:

Total Repayment:

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1. What is the Car Loan Payment Formula?

The car loan payment formula calculates your fixed monthly payment (EMI) for a principal amount at a given interest rate over a specified term. This is the standard formula used by Commonwealth Bank and most lenders.

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 ÷ 12)
$ n $ — Total number of payments (term in years × 12)
$ PMT $ — Monthly payment amount (AUD)

Explanation: The formula accounts for compound interest over the life of the loan to determine a fixed monthly payment that completely pays off the loan by the end of the term.

3. About Commonwealth Bank Car Loans

Details: Commonwealth Bank offers car loans with competitive rates typically between 5.99% to 8.99% p.a. (as of 2023), with terms from 1 to 7 years. Rates may vary based on creditworthiness and loan specifics.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's the typical interest rate for CBA car loans?
A: Rates typically range from 5.99% to 8.99% p.a. depending on loan term, amount, and borrower credit profile.

Q2: Are there any additional fees?
A: CBA may charge an establishment fee (around $150-$250) and monthly service fees. These are not included in this calculation.

Q3: Can I get a better rate?
A: Rates may be lower for existing CBA customers, larger loan amounts, or shorter terms. Secured loans generally have better rates.

Q4: What's the maximum loan term available?
A: CBA offers terms up to 7 years for car loans, though shorter terms mean less total interest paid.

Q5: Is this calculation accurate for my actual payment?
A: This provides an estimate. Your actual payment may vary based on specific loan terms, fees, and any rate discounts you qualify for.