Nab Home Loan Repayment Calculator

Home Loan Repayment Formula:

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

Monthly Repayment (PMT):

Total Interest:

Total Repayment:

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1. What is the Home Loan Repayment Formula?

The home loan repayment formula calculates the fixed monthly payment required to fully repay a loan over its term, including both principal and interest components. This is the standard calculation used by Australian banks including NAB.

2. How Does the Calculator Work?

The calculator uses the standard home loan repayment 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 monthly payments (years × 12)
\( PMT \) — Monthly repayment amount (AUD)

Explanation: The formula accounts for compound interest over the life of the loan, calculating a fixed payment that pays off both interest and principal over the term.

3. About NAB Home Loans

Details: NAB (National Australia Bank) offers home loans with competitive rates starting from 6.59% p.a. (as of current date) with terms up to 30 years. This calculator provides estimates for standard principal and interest loans.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (NAB's current rate is pre-filled), and loan term in years (up to 30). The calculator will show your estimated monthly repayment and total loan cost.

5. Frequently Asked Questions (FAQ)

Q1: Does this include NAB's fees and charges?
A: No, this calculates principal and interest repayments only. Additional fees like application fees or annual package fees are not included.

Q2: How accurate is this calculator?
A: It provides accurate estimates for fixed-rate principal and interest loans. For variable rates or interest-only periods, consult NAB directly.

Q3: Can I calculate extra repayments?
A: This shows standard repayments only. Extra repayments would reduce the loan term and total interest.

Q4: What's the minimum deposit for a NAB home loan?
A: Typically 5-20% of the property value, but requirements vary based on loan type and borrower circumstances.

Q5: How often are repayments made?
A: This calculator shows monthly repayments, but NAB also offers fortnightly or weekly options which can reduce total interest.