Financing a vehicle is a significant financial decision, and understanding how your monthly payment is calculated is key to making informed choices. This calculator is designed to help you estimate your monthly payments for an auto loan from Redstone Federal Credit Union (RBFCU), giving you a clear picture of potential costs.
How the Monthly Payment is Calculated
The calculation for an auto loan's monthly payment is based on the following key factors:
Principal Loan Amount: This is the total amount you borrow to purchase the vehicle.
Annual Interest Rate: This is the yearly cost of borrowing the money, expressed as a percentage.
Loan Term: This is the total duration of the loan, typically expressed in years or months.
The standard formula used to calculate the fixed monthly payment (M) for an amortizing loan is:
Therefore, the estimated monthly payment for this auto loan would be approximately $487.10.
Using the RBFCU Auto Loan Calculator
This calculator simplifies the process. Simply enter the desired loan amount, the annual interest rate you anticipate, and the loan term in years. The calculator will instantly provide an estimated monthly payment. Remember that this is an estimate, and actual rates and terms may vary based on your creditworthiness and RBFCU's lending policies. We encourage you to use this tool to budget effectively and explore different financing scenarios for your next vehicle purchase.
// Synchronize range sliders with number inputs
var interestRateInput = document.getElementById('interestRate');
var interestRateDisplay = document.getElementById('interestRateDisplay');
var loanTermInput = document.getElementById('loanTerm');
var loanTermDisplay = document.getElementById('loanTermDisplay');
interestRateInput.oninput = function() {
interestRateDisplay.value = this.value;
};
interestRateDisplay.oninput = function() {
interestRateInput.value = this.value;
};
loanTermInput.oninput = function() {
loanTermDisplay.value = this.value;
};
loanTermDisplay.oninput = function() {
loanTermInput.value = this.value;
};
function calculateMonthlyPayment() {
var principal = parseFloat(document.getElementById('loanAmount').value);
var annualRate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var monthlyPaymentElement = document.getElementById('monthlyPayment');
// Input validation
if (isNaN(principal) || principal <= 0) {
monthlyPaymentElement.textContent = "Invalid Loan Amount";
monthlyPaymentElement.style.color = "#dc3545";
return;
}
if (isNaN(annualRate) || annualRate < 0) {
monthlyPaymentElement.textContent = "Invalid Interest Rate";
monthlyPaymentElement.style.color = "#dc3545";
return;
}
if (isNaN(years) || years 0) {
monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
// Handle 0% interest rate
monthlyPayment = principal / numberOfPayments;
}
monthlyPaymentElement.textContent = "$" + monthlyPayment.toFixed(2);
monthlyPaymentElement.style.color = "#28a745"; // Success Green
}