Arizona Federal Credit Union Auto Loan Calculator

How to Use This Calculator

To use the Arizona Federal Credit Union Auto Loan Calculator:

1. Enter the loan amount you're considering in the "Loan Amount" field.
2. Input the interest rate offered by Arizona Federal Credit Union in the "Interest Rate" field.
3. Select the loan term (in months) from the dropdown menu.
4. Click the "Calculate" button to see your estimated monthly payment, total interest, and total repayment amount.
5. Review the amortization schedule chart to see how your loan balance changes over time.

The calculator uses the standard auto loan payment formula to provide accurate estimates. Keep in mind that actual payments may vary based on additional fees and your specific credit union terms.

Formula Used

The calculator uses the following formula to calculate your monthly auto loan payment:

This formula accounts for the interest on the loan balance each month, providing an accurate estimate of your monthly payment.

Worked Example

Let's calculate a monthly payment for a $20,000 loan with a 4.5% annual interest rate over 60 months (5 years).

1. Convert the annual interest rate to a monthly rate: 4.5% ÷ 12 = 0.375% or 0.00375 in decimal form.
2. Plug the values into the formula:
   M = $20,000 [ 0.00375(1 + 0.00375)^60 ] / [ (1 + 0.00375)^60 - 1 ]
3. Calculate the numerator and denominator separately:
   • Numerator: 0.00375 × (1.00375)^60 ≈ 0.257
   • Denominator: (1.00375)^60 - 1 ≈ 0.263
4. Divide the numerator by the denominator: 0.257 ÷ 0.263 ≈ 0.977
5. Multiply by the principal: $20,000 × 0.977 ≈ $19,540

Therefore, the estimated monthly payment would be approximately $325.67. The total interest paid would be $5,667.14, and the total repayment amount would be $25,667.14.