Loan Payment Calculator Westpac

Loan Payment Formula:

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

Monthly Payment (PMT):

Total Payment:

Total Interest:

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1. What is the Loan Payment Formula?

The loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. This is the standard formula used by banks including Westpac for personal loan calculations.

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 (months)
$ PMT $ — Monthly payment amount (AUD)

Note: Westpac personal loan rates start at 6.49% p.a. (as of 2023), but your actual rate may vary based on credit assessment.

3. About Westpac Personal Loans

Details: Westpac offers personal loans from $4,000 to $50,000 with terms from 1 to 7 years. Rates are fixed for the loan term, and there are no early repayment fees.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (Westpac's current starting rate is pre-filled), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does Westpac charge any additional fees?
A: Westpac charges a $250 establishment fee for personal loans, which isn't included in this calculator.

Q2: How accurate is this calculator?
A: This provides an estimate. Your actual payment may differ slightly due to rounding or specific loan terms.

Q3: Can I pay off my loan early?
A: Yes, Westpac allows early repayment without penalty fees.

Q4: How are payments applied?
A: Payments are first applied to interest, then principal. Early in the loan, more goes toward interest.

Q5: What's the minimum loan amount?
A: Westpac's minimum personal loan amount is $4,000.