1. What is the EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a home loan. This calculator uses the standard CBA-style home loan calculation formula, with rates starting at 6.24% p.a.

2. How Does the Calculator Work?

The calculator uses the EMI formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months
• \( PMT \) — Monthly payment (EMI) in AUD

Explanation: The formula accounts for both principal and interest components of your loan payment, with more interest paid in early years.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps in financial planning, budgeting, and comparing different loan options before committing to a home loan.

4. Using the Calculator

Tips: Enter principal amount in AUD, annual interest rate (starting at 6.24%), and loan term in years. All values must be valid (principal ≥ 1000, rate > 0, term ≥ 1 year).

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Commbank Philippines?
A: While it uses CBA-style calculations, it's a general home loan calculator and not specific to any bank or region.

Q2: What's included in the EMI payment?
A: The EMI includes both principal repayment and interest components, with more interest paid in early years.

Q3: How accurate is this calculator?
A: It provides standard EMI calculations but doesn't account for fees, insurance, or rate changes. Actual loan terms may vary.

Q4: Can I calculate for different payment frequencies?
A: This calculator assumes monthly payments. Other frequencies would require different calculations.

Q5: How does loan term affect payments?
A: Longer terms reduce EMI but increase total interest paid. Shorter terms increase EMI but reduce total interest.