This calculator helps you estimate your monthly loan payments for various types of loans offered by RBFCU (Randolph-Brooks Federal Credit Union). Understanding your potential monthly payment is crucial for budgeting and making informed financial decisions, whether you're considering a personal loan, auto loan, or other credit facilities.
How the Calculation Works
The calculator uses a standard loan amortization formula to determine the fixed monthly payment. The formula is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly installment payment.
P = The principal loan amount (the total amount of money you borrow).
i = Your monthly interest rate. This is calculated by dividing your Annual Interest Rate by 12. For example, if your annual rate is 6%, your monthly rate (i) is 0.06 / 12 = 0.005.
n = The total number of payments over the loan's lifetime. This is calculated by multiplying your Loan Term (in Years) by 12. For example, a 5-year loan has 5 * 12 = 60 payments.
Example Calculation
Let's say you are applying for a loan with the following details:
Loan Amount (P): $20,000
Annual Interest Rate: 5.5%
Loan Term: 5 Years
First, we convert the annual interest rate to a monthly rate:
So, the estimated monthly payment for this loan would be approximately $382.30.
Using the RBFCU Loan Calculator
Simply enter the desired Loan Amount, the Annual Interest Rate (as a percentage), and the Loan Term in years. Click "Calculate Monthly Payment" to see your estimated monthly payment. This tool is a great starting point for understanding the financial commitment of a loan.
Disclaimer: This calculator provides an estimate. Actual loan terms, rates, and payments may vary. Consult with RBFCU directly for precise loan details and pre-approval.
function calculateMonthlyPayment() {
var loanAmountInput = document.getElementById("loanAmount");
var interestRateInput = document.getElementById("interestRate");
var loanTermInput = document.getElementById("loanTerm");
var resultDiv = document.getElementById("result");
var principal = parseFloat(loanAmountInput.value);
var annualInterestRate = parseFloat(interestRateInput.value);
var loanTermYears = parseFloat(loanTermInput.value);
if (isNaN(principal) || principal <= 0) {
resultDiv.innerHTML = "Please enter a valid loan amount.";
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
resultDiv.innerHTML = "Please enter a valid annual interest rate.";
return;
}
if (isNaN(loanTermYears) || loanTermYears <= 0) {
resultDiv.innerHTML = "Please enter a valid loan term in years.";
return;
}
var monthlyInterestRate = annualInterestRate / 100 / 12;
var numberOfPayments = loanTermYears * 12;
var monthlyPayment;
if (monthlyInterestRate === 0) {
monthlyPayment = principal / numberOfPayments;
} else {
monthlyPayment = principal * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
var formattedMonthlyPayment = monthlyPayment.toFixed(2);
resultDiv.innerHTML = "Estimated Monthly Payment: $" + formattedMonthlyPayment + "";
}