Psecu Auto Loan Rates Calculator

How to Use This Calculator

To use the PSECU Auto Loan Rates Calculator:

1. Enter the loan amount you're considering in the "Loan Amount" field.
2. Select your desired loan term from the dropdown menu.
3. Enter the current interest rate offered by PSECU.
4. Click the "Calculate" button to see your estimated monthly payment and total interest.

The calculator uses standard auto loan amortization formulas to provide accurate estimates. Keep in mind that actual loan terms may vary based on your credit score and other factors.

Formula Used

The calculator uses the following formula to calculate monthly payments:

Where:

• M = Monthly payment
• P = Principal loan amount
• i = Monthly interest rate (annual rate divided by 12)
• n = Number of payments (loan term in months)

Total interest is calculated by subtracting the principal from the total amount paid over the life of the loan.

Worked Example

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

1. Monthly interest rate = 4.5% / 12 = 0.375% or 0.00375
2. Using the formula: M = $20,000 [ 0.00375(1 + 0.00375)⁶⁰ ] / [ (1 + 0.00375)⁶⁰ - 1 ]
3. This calculates to approximately $362.50 per month
4. Total amount paid = $362.50 × 60 = $21,750
5. Total interest = $21,750 - $20,000 = $1,750

This example shows that over 5 years, you would pay $362.50 per month with $1,750 in total interest.