1. What is the NAB Loan Repayment Formula?

The NAB-style home loan repayment formula calculates monthly payments for a standard principal-and-interest home loan. This formula is widely used by Australian banks including NAB (National Australia Bank) for their mortgage products.

2. How Does the Calculator Work?

The calculator uses the standard loan repayment formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Total number of payments (years × 12)
• \( PMT \) — Monthly repayment amount (AUD)

Explanation: The formula accounts for compound interest over the life of the loan, calculating equal monthly payments that will pay off the loan in full by the end of the term.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly repayment helps with budgeting and assessing loan affordability. It's crucial for comparing different loan options and terms.

4. Using the Calculator

Tips: Enter the principal amount in AUD, annual interest rate (default is 6.59%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to NAB Malaysia?
A: While based on NAB-style calculations, this is a general loan calculator not specific to Malaysia. Always check with your lender for exact rates.

Q2: What's the typical interest rate for NAB loans?
A: Rates vary, but the default 6.59% p.a. is a common reference rate. Actual rates depend on market conditions and individual circumstances.

Q3: Does this include fees and charges?
A: No, this calculates principal and interest only. Additional fees may apply to actual loans.

Q4: Can I use this for other types of loans?
A: Yes, it works for any standard principal-and-interest loan, though terms and rates may differ.

Q5: How accurate is this calculator?
A: It provides a close estimate, but actual repayments may vary slightly due to rounding and specific lender policies.