Financing a vehicle with a PSCU auto loan involves understanding how your monthly payment is calculated.
This calculator helps you estimate your potential monthly payments based on the loan amount,
annual interest rate, and the loan term (duration in years). PSCU (often referring to a credit union's
cooperative structure, like those affiliated with the PSCU network) typically offers competitive auto loan
rates and terms tailored to their members' needs.
The Math Behind Auto Loan Payments
The calculation for a fixed-rate auto loan payment is based on the amortization formula.
The formula determines the fixed periodic payment (M) required to pay off a loan over a set period.
The standard formula is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly payment
P = The principal loan amount (the amount you borrow)
i = Your monthly interest rate (annual rate divided by 12)
n = The total number of payments over the loan's lifetime (loan term in years multiplied by 12)
How to Use This Calculator:
Loan Amount: Enter the total price of the vehicle you intend to purchase, minus any down payment.
Annual Interest Rate: Input the Annual Percentage Rate (APR) offered by PSCU for your auto loan. This is the yearly cost of borrowing.
Loan Term (Years): Select the duration of the loan in years. Shorter terms usually mean higher monthly payments but less total interest paid over time. Longer terms result in lower monthly payments but more total interest paid.
Example Calculation:
Let's say you are looking to finance a car with the following details:
Loan Amount (P): $25,000
Annual Interest Rate: 5.0%
Loan Term: 5 Years
First, we convert the annual interest rate to a monthly interest rate:
i = 5.0% / 12 months = 0.05 / 12 ≈ 0.00416667
Next, we calculate the total number of payments:
n = 5 years * 12 months/year = 60 payments
Now, we plug these values into the formula:
M = 25000 [ 0.00416667(1 + 0.00416667)^60 ] / [ (1 + 0.00416667)^60 – 1]
Calculating this yields an estimated monthly payment of approximately $482.51.
Why Consider a PSCU Auto Loan?
PSCU affiliated credit unions often provide excellent auto loan options. They focus on member benefits, potentially offering lower rates than traditional banks, flexible terms, and a more personalized lending experience. By using this calculator, you can better prepare for your auto financing journey and make an informed decision when applying for a loan with your credit union.
function updateRateDisplay() {
var rateInput = document.getElementById('interestRate');
var rateValueSpan = document.getElementById('interestRateValue');
rateValueSpan.textContent = parseFloat(rateInput.value).toFixed(1) + '%';
}
function updateTermDisplay() {
var termInput = document.getElementById('loanTerm');
var termValueSpan = document.getElementById('loanTermValue');
termValueSpan.textContent = termInput.value + ' Years';
}
function calculateLoan() {
var loanAmountInput = document.getElementById('loanAmount');
var interestRateInput = document.getElementById('interestRate');
var loanTermInput = document.getElementById('loanTerm');
var resultDiv = document.getElementById('result');
var P = parseFloat(loanAmountInput.value);
var annualRate = parseFloat(interestRateInput.value);
var termYears = parseFloat(loanTermInput.value);
// Input validation
if (isNaN(P) || P <= 0) {
resultDiv.innerHTML = "Please enter a valid loan amount.";
return;
}
if (isNaN(annualRate) || annualRate <= 0) {
resultDiv.innerHTML = "Please enter a valid annual interest rate.";
return;
}
if (isNaN(termYears) || termYears <= 0) {
resultDiv.innerHTML = "Please enter a valid loan term.";
return;
}
var i = annualRate / 100 / 12; // Monthly interest rate
var n = termYears * 12; // Total number of payments
var monthlyPayment = 0;
if (i === 0) { // Handle 0% interest rate scenario
monthlyPayment = P / n;
} else {
monthlyPayment = P * (i * Math.pow(1 + i, n)) / (Math.pow(1 + i, n) – 1);
}
if (isNaN(monthlyPayment) || monthlyPayment === Infinity) {
resultDiv.innerHTML = "Calculation error. Please check inputs.";
} else {
resultDiv.innerHTML = '$' + monthlyPayment.toFixed(2) +
'Estimated Monthly Payment';
}
}
// Initialize displays
updateRateDisplay();
updateTermDisplay();
// Add event listeners for sliders to update displays immediately
document.getElementById('interestRate').addEventListener('input', updateRateDisplay);
document.getElementById('loanTerm').addEventListener('input', updateTermDisplay);