Commonwealth Home Loan Repayment Calculator

Loan Repayment Formula:

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

Monthly Repayment (PMT):

Total Repayment:

Total Interest:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Home Loan Repayment Formula?

The home loan repayment formula calculates the fixed monthly payment required to repay a loan over a specified term. This is the standard formula used by Commonwealth Bank and most Australian lenders for principal-and-interest home loans.

2. How Does the Calculator Work?

The calculator uses the standard loan repayment 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 repayment amount (AUD)

Explanation: The formula accounts for compound interest over the life of the loan, calculating a fixed payment that covers both principal and interest.

3. About Commonwealth Bank Loans

Details: Commonwealth Bank (CBA) typically offers home loan interest rates around 6.24% p.a. (as of 2023), with terms usually ranging from 10-30 years. Actual rates may vary based on loan product and customer circumstances.

4. Using the Calculator

Tips: Enter loan amount in AUD, annual interest rate (default is 6.24%), and loan term in years. The calculator will show your estimated monthly repayment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: Does this include CBA's fees and charges?
A: No, this calculates principal and interest only. Additional fees like application fees or annual package fees are not included.

Q2: How accurate is this calculator?
A: It provides accurate estimates for fixed-rate loans. Variable rates may change over time, affecting actual repayments.

Q3: Can I calculate extra repayments?
A: This calculator shows standard repayments only. Extra repayments would reduce the loan term and total interest.

Q4: What's the minimum deposit for a CBA home loan?
A: Typically 5-20% of the property value, but this calculator focuses on repayments after the loan is established.

Q5: How often are repayments made?
A: This calculator assumes monthly repayments, which is the most common frequency for Australian home loans.