1. What is the NAB Personal Loan Repayment Calculator?

The NAB Personal Loan Repayment Calculator helps you estimate your monthly loan payments, including the impact of making extra payments. It uses standard loan amortization formulas to provide accurate estimates.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, including interest.

3. Importance of Loan Repayment Calculation

Details: Understanding your loan payments helps with budgeting and shows how extra payments can reduce total interest and shorten the loan term.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate as a percentage, loan term in years, and any additional monthly payment you plan to make.

5. Frequently Asked Questions (FAQ)

Q1: How do extra payments affect my loan?
A: Extra payments reduce the principal faster, which decreases total interest paid and may shorten the loan term.

Q2: Is this calculator specific to NAB loans?
A: While designed with NAB loans in mind, it works for any standard personal loan with fixed rates.

Q3: Does this include fees?
A: This calculates principal and interest only. Loan establishment or monthly fees would be additional.

Q4: What if I make irregular extra payments?
A: This calculator assumes consistent extra payments. For irregular payments, results will be approximate.

Q5: How accurate is this calculator?
A: It provides estimates based on your inputs. Actual payments may vary slightly due to rounding or specific loan terms.