Motorcycle loan calculator
This motorcycle loan calculator shows the payment and total cost for a motorcycle, which usually has a shorter term and higher rate than a car loan.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,000.76 | $1,048.52 | $10,689.24 |
| 2 | $3,266.01 | $783.27 | $7,423.23 |
| 3 | $3,554.69 | $494.59 | $3,868.54 |
| 4 | $3,868.54 | $180.40 | $0.00 |
Motorcycle loans are shorter and a little pricier
Lenders typically offer 36 to 60 months for motorcycles, sometimes longer on expensive models, and rates are often a little above car loans. A down payment of 10% to 20% is common. Because insurance, gear and registration add to the cost, include them in your budget alongside the loan payment.
Seasonality and resale
In colder climates riding is seasonal, so a loan can feel long if you ride only part of the year. Resale values depend heavily on brand, condition and mileage, so compare the loan balance with realistic resale prices before choosing a long term.
$13,690 financed: payment by loan length
At 8.5% APR, financing $13,690 (the $14,000 price plus 6% sales tax and $350 in fees minus $1,500 down) costs $280.87 a month over 60 months and $216.80 over 84 months. The longer loan lowers the payment by $64.07 but adds $1,359 in interest. Going the other way, 36 months raises the payment to $432.16 and cuts total interest to $1,868.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 3-year | $432.16 | $1,868 | $15,558 |
| 4-year | $337.44 | $2,507 | $16,197 |
| 5-year | $280.87 | $3,162 | $16,852 |
| 6-year | $243.39 | $3,834 | $17,524 |
| 7-year | $216.80 | $4,521 | $18,211 |
How the interest rate changes a 4-year loan
On the same $13,690 over 4 years, each full percentage point of APR moves the payment by about $6.50 and total interest by about $312. Rates depend on your credit score, the loan term and whether the car is new or used, so get a pre-approval from a bank or credit union before you walk into a dealership.
| APR | Monthly payment | Total interest | Difference vs 8.5% |
|---|---|---|---|
| 6.5% | $324.66 | $1,894 | −$613 |
| 7.5% | $331.01 | $2,198 | −$308 |
| 8.5% | $337.44 | $2,507 | +$0 |
| 9.5% | $343.94 | $2,819 | +$312 |
| 10.5% | $350.51 | $3,134 | +$628 |
What a bigger down payment does
A down payment reduces what you finance, which cuts both the payment and the interest, and it protects you from owing more than the car is worth early in the loan, when new cars depreciate fastest. Here is the same $14,000 car at 8.5% over 4 years with different down payments.
| Down payment | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| $0 | $15,190 | $374.41 | $2,782 |
| $1,400 (10%) | $13,790 | $339.90 | $2,525 |
| $2,800 (20%) | $12,390 | $305.39 | $2,269 |
Paying extra
Adding $100 a month to this loan would pay it off 12 months sooner and save $665 in interest, as long as your lender applies extra money to principal and charges no prepayment penalty. Ask before you start.
Can you afford a $14,000 car?
A common rule of thumb, the 20/4/10 guideline, suggests 20% down, a term of at most 4 years and total car costs under 10% of gross income. On payment alone, $337.44 a month points to a gross income of roughly $40,500 a year to stay at 10%, before insurance, fuel and maintenance. Here the down payment is 11% rather than 20%, which means a smaller monthly payment in exchange for more interest and a longer period of debt.
Will you owe more than the car is worth?
New cars commonly lose around 20% of their value in the first year and roughly 15% a year after that, though this varies by model. Using that rough rule on a $14,000 car, the car stays worth more than the loan from the end of the first year. Gap insurance can cover the difference if the car is totaled while you are underwater.
| End of | Loan balance | Est. car value | Equity |
|---|---|---|---|
| Year 1 | $10,689 | $11,200 | +$511 |
| Year 2 | $7,423 | $9,520 | +$2,097 |
| Year 3 | $3,869 | $8,120 | +$4,251 |
| Year 4 | $0 | $6,860 | +$6,860 |
| Year 5 | $0 | $5,880 | +$5,880 |
Frequently asked questions
What is a typical motorcycle loan term?
Most are 36 to 60 months, with longer terms available on expensive bikes.
Can I finance used motorcycle gear and accessories?
Many lenders let you include accessories in the price at the dealer, but financing them raises the amount borrowed and the interest.
How much is the monthly payment on a $14,000 car?
At 8.5% over 4 years, financing $13,690 costs about $337.44 a month with $2,507 in total interest. Change the inputs above to match your own quote.
Is a longer loan a good idea on $13,690?
A longer term lowers the payment but increases the total interest and keeps you owing money for longer, which raises the chance of owing more than the car is worth. Most lenders and consumer advocates suggest 60 months or less where the budget allows.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.