1. What is the CommBank Personal Loan Calculator?

This calculator estimates monthly payments for CommBank-style personal loans (not specific to Philippines) using the standard loan payment formula. It helps borrowers understand their repayment obligations before taking a loan.

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 ÷ 100)
• \( n \) — Loan term in months
• \( PMT \) — Monthly payment amount (AUD)

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

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also allows comparison between different loan offers.

4. Using the Calculator

Tips: Enter principal in AUD, annual interest rate (not APR), and loan term in months (1-120). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Philippines?
A: No, this calculates CommBank-style personal loan payments in AUD, not specific to Philippines.

Q2: Does this include fees or insurance?
A: No, this calculates base payments only. Actual loans may include additional fees or insurance costs.

Q3: What's the difference between interest rate and APR?
A: APR includes fees; this calculator uses the base interest rate. Actual APR may be higher.

Q4: Can I use this for other types of loans?
A: This formula works for any fixed-rate, fixed-term amortizing loan, but terms may differ.

Q5: How accurate is this calculator?
A: It provides a good estimate, but actual payments may vary slightly due to rounding or specific bank policies.