The excitement of hitting the open road is hard to beat. For many, traveling the world on a motorcycle is the ultimate adventure. Whether you’re enjoying a smooth ride on a Triumph Rocket X or tackling tough trails on a KTM 350 EXC, there’s a special feeling that comes from seeing the world on a bike.
If you’re thinking about buying a cruiser, off-road bike, or scooter, it’s important to know what you can afford. Use our motorcycle loan calculator to figure out your monthly payments by entering details like your down payment and interest rate. Also, check our Q score calculator to see which motorcycle brands are popular right now.
What is a Motorcycle Loan?
A motorcycle loan is a kind of loan you can get from credit unions, banks, or online lenders. Sometimes, these loans are made just for buying motorcycles, or you can use a personal loan to buy one.
Besides banks and credit unions, motorcycle dealerships and manufacturers offer their own financing choices. For example, Harley Davidson provides financing for both new and used motorcycles, while Ducati offers flexible financing only for new bikes.
Financing terms can differ, and some deals might include extras like an extended warranty for mechanical issues after the standard one ends. Comparing all your choices can help you pick the best and budget-friendly deal.
Components of a Motorcycle Loan
Before you understand what a loan calculator for motorcycle is, you need to understand the three key factors that determine the monthly payment. These are:
- Principle Amount
The principal is the amount of money you want to borrow from the bank or lender. If you borrow more, your monthly payments will be higher. To keep your costs low, try to borrow less and pay as much as you can from your own savings.
- Interest Rate
When you repay a loan, you pay both the loan amount and interest. Higher interest rates lead to bigger monthly payments. Although you can’t change your lender’s rate, you can compare different lenders and pick the one with the lowest interest rate.
- Loan Term
The loan term means the time you have to compensate for the loan. A shorter term, like one year, means you pay off the loan faster but have higher monthly payments. A longer-term means smaller monthly payments, but you’ll take longer to repay the loan.
What is a Motorcycle Loan Calculator?
A motorcycle loan calculator is an online free tool that you can use to calculate your monthly payment amount. When you get a loan to buy a bike or scooter, you pay it back in equal monthly payments.
The amount you pay each month depends on three main factors which are loan amount, rate of interest, and tenure. The calculator uses these factors to find your monthly payments.
Just input the required details, which will quickly give you accurate results using the standard formula. Plus, It’s easy for anyone to use and helps you understand your future payments in seconds.
Benefits of Using this Calculator
Our motorcycle financial calculator offers many unique benefits and features. Some of them include:
- Quick Calculation
Manual calculations can be slow and often lead to mistakes if you rush them. The calculator, on the other hand, instantly calculates your monthly payments based on the information you provide, making the process faster and more accurate.
- Easy Budget Planning
Our motorcycle loan calculator shows you how much your monthly payment will be before you take out a loan. This helps you plan your budget by letting you know exactly what you’ll pay each month so you can manage your money and avoid spending too much.
- Accuracy
When you calculate your bike loan payments manually, you might not be sure if your results are correct. Even a small mistake can affect your understanding of the loan. To avoid this, it’s better to use the calculator. It provides correct results no matter how many times you use it.
- Unrestricted Usage
Our calculator is free to use, and you can use it as often as you like. There are no restrictions on how many times you can use it. This is very useful for comparing different bike loans to find the most affordable one.
Motorcycle Loan Rates
The table below shows the loan rates for new and used motorcycles from APG Federal Credit Union, USA.
| New Motorcycle Rates | ||
| Tenure | Annual Percentage Rate | Monthly Paymentper $1,000 borrowed |
| 1-36 Months | 4.99% | $29.97 |
| 37-51 Months | 5.24% | $21.91 |
| 52-63 Months | 5.74% | $18.42 |
| 64-75 Months | 6.24% | $16.14 |
| 76-84 Months | 7.24% | $15.21 |
| Used Motorcycle Rates | ||
| Tenure | Annual Percentage Rate | Monthly Paymentper $1,000 borrowed |
| 1-36 Months | 5.74% | $30.30 |
| 37-51 Months | 5.99% | $22.26 |
| 52-63 Months | 6.49% | $18.77 |
| 64-75 Months | 6.99% | $16.50 |
| 76-84 Months | 7.99% | $15.58 |
How to Calculate the Motorcycle Loan?
Picking the right motorcycle model is a key decision when buying a bike, as the wrong one can cause problems later on. To calculate the motorcycle loan manually, use this formula:
| M = [P x R x (1+R)^N] / [(1+R)^N – 1] |
Where:
- P is the loan amount.
- R is the interest rate divided by 100.
- N is the loan period in months.
For example, let’s say you take a motorcycle loan of $12,000 to buy a sports bike, with an interest rate of 10% and a repayment period of 5 years. Using the formula, your loan would be calculated as follows: M = $[12000 x 0.10 x (1+0.10)^60] / [(1+0.10)^60 – 1]. This gives a monthly payment of $254.96.
How to Use a Motorcycle Loan Calculator?
Calculating your monthly payments using the complex formula banks use can be difficult and take a lot of time. Instead of doing it manually, it’s much easier and reliable to use a calculator.
Here’s how you can use our motorcycle finance calculator:
1. Enter Bike Price
First, input the total cost of the bike you plan to buy. This amount should be the full price of the motorcycle before any interest or additional fees are added. Make sure you enter the accurate value as it sets the base for your loan calculation.
2. Set Interest Rate
Next, in the motorcycle loan calculator, enter the interest rate for your bike loan. This rate, usually expressed as a percentage, determines how much extra money you will need to pay on top of the loan amount over time.
3. Choose Loan Tenure
Choose the loan tenure or how many months you’ll repay the loan. A longer-term means lower monthly payments but more total interest, while a shorter term means higher payments but less interest overall.
4. Hit the “calculate” button
Once all the details are mentioned, click the calculate button. The calculator will show your monthly payment amount, total interest, and the overall cost of the loan. Review these results carefully to ensure they meet your financial plans.
Example of Using a Motorcycle Loan Calculator
Suppose Amanda wants to buy a bike that costs $36,000. She uses the motorcycle loan calculator by entering this amount as the bike price. Next, she sets the interest rate at 8% and chooses a loan tenure of 6 years.
The calculator then processes these details and shows her monthly payment. Amanda sees that her monthly payment is $631.20. The calculator also shows the total interest she will pay over the loan period, helping her understand the total cost of the motorcycle.
Frequently Asked Questions
Can you finance a motorcycle?
Yes, you can finance a motorcycle. This means you can take out a loan to buy the bike and then pay back the loan in monthly payments. You can acquire this loan from credit unions, banks, or motorcycle dealerships.
How reliable is the motorcycle loan calculator?
Our calculator provides accurate results as long as you enter the correct details. It uses standard formulas to calculate your payments. However, keep in mind that the actual loan terms may vary based on the lender’s policies and fees.
Can I use the calculator to calculate different loan amounts?
Yes, our calculator allows you to enter various loan amounts and terms. This feature helps you see how changing the loan amount or repayment period impacts your monthly payments and total interest.
Is your motorcycle finance calculator free to use?
Yes, our calculator is free to use and available online. You can use it as often as you like without any cost. The calculator provides quick estimates and helps you plan your budget before applying for a loan.