Home Loan Repayment Calculator Nab Bank

NAB Home Loan Repayment Formula:

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

Monthly Repayment (PMT):

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1. What is the NAB Home Loan Repayment Formula?

The NAB Home Loan Repayment Calculator uses the standard amortization formula to calculate monthly repayments for principal and interest home loans. This formula accounts for compound interest over the life of the loan.

2. How Does the Calculator Work?

The calculator uses the following 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, in decimal)
\( n \) — Total number of monthly payments (loan term in years × 12)
\( PMT \) — Monthly repayment amount (AUD)

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, including both principal and interest components.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly repayment helps with budgeting, comparing loan products, and assessing borrowing capacity. NAB's current standard variable rate is typically around 6.59% p.a. (as of 2023).

4. Using the Calculator

Tips: Enter the loan amount in AUD, the annual interest rate (NAB's current rate is pre-filled), and loan term in years. The calculator assumes principal and interest repayments.

5. Frequently Asked Questions (FAQ)

Q1: What is NAB's current home loan rate?
A: As of 2023, NAB's standard variable rate is typically around 6.59% p.a., but actual rates may vary based on product and customer circumstances.

Q2: Does this include loan fees?
A: No, this calculation only includes principal and interest. NAB loans may have additional fees like application or annual fees.

Q3: How accurate is this calculator?
A: It provides estimates for standard principal and interest loans. For interest-only or other loan types, consult NAB directly.

Q4: Can I calculate fortnightly repayments?
A: For fortnightly repayments, divide the monthly amount by 2 (but make 26 payments per year instead of 12 monthly).

Q5: How does extra repayment affect my loan?
A: Extra repayments reduce principal faster, potentially saving interest and shortening loan term. NAB allows extra repayments on most variable loans.