Financing a vehicle is a significant decision, and understanding your monthly payments is crucial.
This calculator is designed to help you estimate your monthly auto loan payments, similar to what you might get with an Auto Loan from America First Credit Union (AFCU).
By inputting the loan amount, the annual interest rate, and the loan term in years, you can quickly see how much you can expect to pay each month.
How is the Monthly Payment Calculated?
The calculation uses the standard formula for an amortizing loan, which determines the fixed periodic payment needed to pay off the loan over its term. The 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 (the annual interest rate divided by 12)
n = The total number of payments over the loan's lifetime (the loan term in years multiplied by 12)
Example Calculation
Let's say you're looking to finance a car and get an auto loan from AFCU for:
Loan Amount (P): $25,000
Annual Interest Rate: 5.5%
Loan Term: 5 Years
First, we need to convert the annual interest rate to a monthly interest rate (i):
i = 5.5% / 12 / 100 = 0.055 / 12 ≈ 0.0045833
Next, we calculate the total number of payments (n):
So, the estimated monthly payment for this scenario would be approximately $477.90. This calculator helps you perform these calculations quickly.
Tips for Auto Loans at AFCU
Credit Score: A higher credit score typically leads to lower interest rates.
Down Payment: A larger down payment reduces the loan amount, lowering your monthly payments and the total interest paid.
Loan Term: Shorter loan terms mean higher monthly payments but less interest paid over time. Longer terms reduce monthly payments but increase total interest costs.
Pre-approval: Getting pre-approved before shopping can give you bargaining power and a clear understanding of your budget.
This calculator provides an estimate. Actual loan terms, rates, and final payment amounts will be provided by AFCU upon loan approval.
function calculateMonthlyPayment() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var resultDiv = document.getElementById("result");
var monthlyPaymentResultSpan = document.getElementById("monthlyPaymentResult");
if (isNaN(loanAmount) || isNaN(annualInterestRate) || isNaN(loanTerm) ||
loanAmount <= 0 || annualInterestRate < 0 || loanTerm 0) {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// If interest rate is 0, payment is simply loan amount divided by number of payments
monthlyPayment = loanAmount / numberOfPayments;
}
monthlyPaymentResultSpan.textContent = "$" + monthlyPayment.toFixed(2);
resultDiv.style.display = 'block';
}
function resetCalculator() {
document.getElementById("loanAmount").value = "";
document.getElementById("interestRate").value = "";
document.getElementById("loanTerm").value = "";
document.getElementById("result").style.display = 'none';
document.getElementById("monthlyPaymentResult").textContent = "$0.00";
}