1. What is the NAB Personal Loan Payment Formula?

The NAB personal loan repayment formula calculates the fixed monthly payment required to repay a loan over a specified term. It accounts for the principal amount, annual interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)
• \( PMT \) — Monthly payment amount (AUD)

Explanation: The formula calculates the fixed payment needed to completely amortize the loan over its term, accounting for both principal and interest.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also shows the total interest cost over the loan's life.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (without % sign), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does NAB charge for personal loans?
A: NAB personal loan rates vary (typically 6.99%-19.99% p.a.) depending on loan purpose, amount, term, and creditworthiness.

Q2: Are there any fees on NAB personal loans?
A: NAB may charge an establishment fee ($150-$600) and monthly service fees. These aren't included in this calculation.

Q3: Can I make extra repayments on NAB personal loans?
A: Yes, NAB allows unlimited extra repayments on variable rate personal loans without penalty.

Q4: How accurate is this calculator?
A: It provides estimates only. Actual payments may differ due to rounding, fees, or rate changes for variable loans.

Q5: What's the maximum term for NAB personal loans?
A: NAB offers personal loan terms from 1-7 years, depending on loan type and amount.