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Westpac Personal Loan Formula:
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The PMT formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. Westpac personal loans typically have interest rates ranging from 6.49% to 12.99% p.a. depending on creditworthiness.
The calculator uses the PMT formula:
Where:
Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that covers both principal and interest each month.
Details: Understanding your monthly repayment helps with budgeting and ensures the loan is affordable. It also allows comparison between different loan terms and rates.
Tips: Enter the loan amount (minimum $1,000), select an interest rate within Westpac's range (6.49%-12.99%), and choose a term between 1-7 years. Results show monthly payment, total repayment, and total interest.
Q1: What's the minimum loan amount with Westpac?
A: Westpac typically offers personal loans from $4,000 to $50,000, though this calculator allows any amount over $1,000 for estimation purposes.
Q2: Are there any fees not included in this calculation?
A: Yes, Westpac charges a $150-$250 establishment fee and possibly monthly fees, which aren't included in this PMT calculation.
Q3: Can I make extra repayments?
A: Westpac allows extra repayments on variable rate personal loans without penalty, but fixed rate loans may have restrictions.
Q4: How does loan term affect total interest?
A: Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total interest paid.
Q5: Is the interest rate fixed or variable?
A: Westpac offers both options. This calculator assumes a fixed rate for the loan term.