1. What is the Personal Loan Calculator?

The Personal Loan Calculator estimates your monthly loan payments based on the loan amount, interest rate, and term. It uses the standard PMT formula to calculate payments for fixed-rate personal loans.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

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

Explanation: The formula calculates the fixed payment required each period to pay off a loan with fixed interest over the specified term.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and comparing different loan options. It shows the true cost of borrowing.

4. Using the Calculator

Tips: Enter loan amount in AUD, annual interest rate as a percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include fees and charges?
A: No, this calculates principal and interest only. Actual loan payments may include additional fees.

Q2: What's a typical personal loan interest rate?
A: Rates vary but typically range from 6% to 36% APR depending on creditworthiness and lender.

Q3: How does loan term affect payments?
A: Longer terms reduce monthly payments but increase total interest paid over the life of the loan.

Q4: Can I use this for other types of loans?
A: This works for any fixed-rate, fixed-term loan, including auto loans and some mortgages.

Q5: How accurate is this calculator?
A: It provides precise calculations based on the inputs, but actual loan terms may vary slightly.