Pentagon Federal Credit Union Auto Loan Calculator

How to Use This Calculator

Using this calculator is simple:

1. Enter the loan amount you're requesting from Pentagon Federal Credit Union.
2. Input the annual interest rate offered by the credit union.
3. Select the loan term in years.
4. Click "Calculate" to see your estimated monthly payment, total interest, and total cost of the loan.
5. Review the amortization schedule chart to understand how your loan will be paid off over time.

The calculator uses standard auto loan amortization formulas to provide accurate estimates. Remember that actual loan terms may vary based on your creditworthiness and the credit union's specific requirements.

Formula Used

The calculator uses the standard auto loan payment formula:

Total Interest = (Monthly Payment × n) - P

Total Cost = P + Total Interest

Worked Example

Let's calculate a $25,000 auto loan at 4.5% annual interest for 5 years:

1. Monthly interest rate = 4.5% ÷ 12 = 0.375% or 0.00375
2. Number of payments = 5 × 12 = 60
3. Monthly payment = $25,000 × (0.00375(1 + 0.00375)^60) / ((1 + 0.00375)^60 - 1) ≈ $462.68
4. Total interest = ($462.68 × 60) - $25,000 ≈ $1,576.80
5. Total cost = $25,000 + $1,576.80 ≈ $26,576.80

This example shows that with a $25,000 loan at 4.5% interest over 5 years, you would pay approximately $462.68 per month, with a total interest cost of about $1,576.80.