1. What is the Loan Repayment Calculator?

The Loan Repayment Calculator calculates your monthly payment for a loan in Australian dollars (AUD) based on the principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the standard loan repayment formula:

Where:

• \( PMT \) — Monthly payment (AUD)
• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate divided by 12 in decimal)
• \( n \) — Number of monthly payments

Explanation: The formula accounts for compound interest over the life of the loan to determine a fixed monthly payment.

3. Importance of Loan Repayment Calculation

Details: Knowing your monthly payment helps with budgeting and financial planning when taking out a loan.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate as a percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator include Australian loan fees?
A: No, this calculates the principal and interest only. Australian loans often have additional fees.

Q2: How does compounding work in Australian loans?
A: Most Australian loans compound monthly, which is accounted for in this calculator.

Q3: What's a typical loan term in Australia?
A: Common terms are 25-30 years for mortgages and 1-7 years for personal/car loans.

Q4: How accurate is this calculator?
A: It provides a good estimate but actual payments may vary slightly due to rounding.

Q5: Can I use this for interest-only loans?
A: No, this calculator is for principal and interest repayments only.