1. What is the Loan Repayment Calculator?

The Loan Repayment Calculator helps you estimate your monthly payments for Commonwealth Bank loans using the standard PMT formula. It's useful for planning personal loans, home loans, or car finance.

2. How Does the Calculator Work?

The calculator uses the standard PMT formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of monthly payments (loan term in years × 12)
• \( PMT \) — Monthly payment 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 options, and ensuring the loan is affordable before committing.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Does this include CommBank's fees?
A: This calculates principal and interest only. Additional fees may apply - check with CommBank for complete repayment amounts.

Q2: How accurate is this calculator?
A: It provides a good estimate for fixed-rate loans. Variable rates may change over time.

Q3: Can I use this for other banks' loans?
A: Yes, the formula works for any standard loan, but terms and rates may differ between banks.

Q4: What if I make extra repayments?
A: Extra payments reduce principal faster, potentially saving interest and shortening loan term.

Q5: How does loan term affect repayments?
A: Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total interest.