Understanding Your America First Credit Union Car Loan
Financing a new or used vehicle is a significant decision, and understanding the potential costs involved is crucial. This calculator is designed to provide an estimated monthly payment for a car loan from America First Credit Union, helping you budget effectively.
Car loans typically involve a principal amount (the price of the vehicle minus your down payment), an annual interest rate, and a loan term (the duration over which you'll repay the loan). The monthly payment is calculated based on these factors to ensure the loan is fully amortized by the end of the term.
How the Calculation Works
The formula used to calculate the monthly payment (M) for an amortizing loan is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal loan amount (Vehicle Price – Down Payment)
n = Total number of payments (Loan Term in Years * 12)
This formula takes into account the principal balance, the interest accrued each month, and the repayment period to determine a consistent monthly payment that will pay off the loan over its specified term.
Why Use This Calculator?
Budgeting: Get a clear estimate of what your monthly car payments might be.
Comparison: See how different vehicle prices, down payments, interest rates, and loan terms affect your monthly payment.
Informed Decisions: Make more confident choices when negotiating with dealerships or exploring financing options.
Disclaimer: This calculator provides an estimated monthly payment based on the inputs provided. Actual loan offers from America First Credit Union may vary based on creditworthiness, specific loan products, current rates, and other factors. It is recommended to consult directly with America First Credit Union for precise loan terms and pre-approval.
function calculateCarLoan() {
var loanAmountInput = document.getElementById("loanAmount");
var downPaymentInput = document.getElementById("downPayment");
var interestRateInput = document.getElementById("interestRate");
var loanTermInput = document.getElementById("loanTerm");
var resultDiv = document.getElementById("result");
var monthlyPaymentPara = document.getElementById("monthlyPayment");
var vehiclePrice = parseFloat(loanAmountInput.value);
var downPayment = parseFloat(downPaymentInput.value);
var annualInterestRate = parseFloat(interestRateInput.value);
var loanTermYears = parseFloat(loanTermInput.value);
// Input validation
if (isNaN(vehiclePrice) || vehiclePrice <= 0) {
alert("Please enter a valid Vehicle Price.");
return;
}
if (isNaN(downPayment) || downPayment < 0) {
alert("Please enter a valid Down Payment.");
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
alert("Please enter a valid Annual Interest Rate.");
return;
}
if (isNaN(loanTermYears) || loanTermYears <= 0) {
alert("Please enter a valid Loan Term in Years.");
return;
}
var principal = vehiclePrice – downPayment;
if (principal <= 0) {
monthlyPaymentPara.innerText = "$0.00";
resultDiv.style.display = "block";
return;
}
var monthlyInterestRate = annualInterestRate / 100 / 12;
var numberOfPayments = loanTermYears * 12;
var monthlyPayment = 0;
// Check for edge case where interest rate is 0
if (monthlyInterestRate === 0) {
monthlyPayment = principal / numberOfPayments;
} else {
monthlyPayment = principal * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
// Format the monthly payment to two decimal places
monthlyPaymentPara.innerText = "$" + monthlyPayment.toFixed(2);
resultDiv.style.display = "block";
}