1. What is the PMT Formula?

The PMT formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. It's used for personal loans, mortgages, and other installment loans.

2. How Does the Calculator Work?

The calculator uses the PMT 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 accounts for compound interest over the loan term, calculating equal monthly payments that pay off both principal and interest.

3. Understanding Westpac Loan Rates

Details: Westpac personal loan rates typically range from 6.49% to 12.99% p.a. depending on creditworthiness, loan amount, and term. Rates are fixed for the loan term.

4. Using the Calculator

Tips: Enter loan amount (minimum $1,000), select interest rate within Westpac's range (6.49%-12.99%), and loan term (1-7 years). Results show monthly payment and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What's the minimum loan amount from Westpac?
A: Westpac typically offers personal loans from $4,000 up to $50,000, though this calculator works for any amount.

Q2: Are there any fees not included in this calculation?
A: Westpac may charge a $150-$250 establishment fee and $10 monthly fee, not included in this calculation.

Q3: Can I make extra repayments?
A: Westpac personal loans typically allow extra repayments without penalty, which would reduce total interest.

Q4: How does credit score affect the rate?
A: Better credit scores generally qualify for lower interest rates within Westpac's range.

Q5: Is the interest rate fixed or variable?
A: Westpac personal loans typically have fixed interest rates for the loan term.