Personal Loan Repayment Calculator

Personal Loan Repayment Calculator - CommBank Mortgage

Loan Payment Formula:

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

Monthly Payment (PMT):

Total Payment:

Total Interest:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Personal Loan Repayment Calculator?

The Personal Loan Repayment Calculator helps you estimate your monthly payments for personal loans alongside your CommBank mortgage. It uses the standard loan payment formula to calculate your repayment amount based on principal, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the loan payment 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 divided by 12)
\( n \) — Number of monthly payments (loan term in years × 12)
\( PMT \) — Monthly payment amount (AUD)

Explanation: The formula accounts for both principal and interest payments over the life of the loan, with payments being equal each month (amortization).

3. Importance of Loan Repayment Calculation

Details: Understanding your loan repayments helps with budgeting and financial planning. It allows you to compare different loan options and choose terms that fit your financial situation.

4. Using the Calculator

Tips: Enter the principal amount in AUD, annual interest rate as a percentage (e.g., 5.5 for 5.5%), and loan term in years. The calculator will show your estimated monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: It provides a good estimate based on the inputs, but actual loan terms may vary based on your credit score, fees, and other factors.

Q2: Does this include CommBank mortgage fees?
A: No, this calculates principal and interest only. Consult with CommBank for complete mortgage cost details.

Q3: Can I use this for other types of loans?
A: Yes, the formula works for any fixed-rate amortizing loan, though terms may differ.

Q4: What's the difference between principal and interest?
A: Principal is the amount borrowed, interest is the cost of borrowing. Early payments are mostly interest.

Q5: How can I reduce my total interest paid?
A: Choose a shorter loan term or make extra principal payments when possible.