Motorcycle Loan Calculator

Calculate the monthly loan payment on a motorcycle by using this Motorcycle Loan Calculator.

Principal Loan Amount:
(This is the amount borrowed after any trade-in and/or downpayment is applied)
Yearly Interest Rate: % Total Months of the Loan:
A 5 year loan has 60 months, a 7 year loan has 72 months.

How do you calculate a motorcycle loan payment?

To calculate the monthly payment on a motorcycle loan use this motorcycle payment formula:

Motorcycle Payment Formula

c = Monthly Payment

r = Monthly Interest Rate (in Decimal Form) =
(Yearly Interest Rate/100) / 12

P = Principal Amount on the Loan

N = Total # of Months for the loan ( Years on the loan x 12)

Formula example for calculating the motorcycle loan payment

Example: Monthly payment for 5 year motorcycle loan, with a principal of $25,000, and a yearly interest rate of 6.5%:

r = (6.5 / 100) / 12 = .005416667

P = 25,000

N = (5 x 12) = 60

The Monthly Payment is $489.15

Downpayment on a Motorcycle Loan

There are a number of ways to finance a new motorcycle. There have been programs that offer financing with no downpayment, low credit score requirements, and you can take a new bike home the same day. Make sure you look at all of the information on programs like this. There are probably some high interest rate associated with it due to the risk level the dealer is taking on to cover the loan. There are also credit card programs that you apply for a card to purchase the motorcycle. Just like other credit cards, there are some high interest rates and some other items in the fine print you should look for. In a traditional loan situation, having enough money for a downpayment can put you in a better position to get a lower interest rate and be able to afford the monthly payments on a more expensive motorcycle. It's something to consider if you're shopping for a new bike.

Trade-in Value on a Motorcycle Loan

There are a number of factors that can affect your cost on a new motorcycle loan. One thing to look at is any trade-in you may have to work with the deal. There are some benefits, and some drawbacks, on trading in an older motorcycle when you go to buy a new one. Traditionally, the trade-in value you receive from a dealer is going to be less than what you may get if you sell the motorcycle to a private buyer. But, one thing to think about is the sales tax benefit you get on the total cost of the transaction. Sales tax is typically only charged on the difference between your trade-in and the sales price. So, if you purchase a new motorcycle for $10,000, and you have a trade-in that the dealer offers $4,000 for, you pay the difference of $6,000. Most states would only charge you sales tax on that $6,000.