You’ve found your dream motorcycle, but before you can hit the road, you need to calculate how much your bike will cost you every month. Financing without knowing your exact monthly payments is risky. Before financing a motorcycle, you need to ensure it not only fits your budget but also accounts for unexpected expenses such as insurance, maintenance, gear, and repairs.
That said, calculating your motorcycle loan cost and understanding which terms work best for you can be complicated. That’s when a motorcycle loan calculator can come in handy.
In this guide, we’ll show you how to use this trusty tool to estimate payments, tweak loan terms, and find a plan that fits your budget. Let’s get started!
What Is A Motorcycle Loan Calculator?
A motorcycle loan calculator is an online tool that helps you visualize how much you will need to pay each month by estimating the payment.
The payment is estimated by using factors such as your loan amount, interest rate, term of the loan and the down payment.
This is extremely helpful for budgeting your monthly expenses and ultimately figuring out if you can afford the loan.
Think of it as an automatic tool. Instead of having to run the calculations yourself, you can plug your numbers into the calculator, and it’ll map out exactly how much you’ll pay monthly—and how much interest you’ll pay.
How To Use A Motorcycle Loan Calculator
Our motorcycle loan calculator makes it easy to calculate your motorcycle’s monthly loan payments. It also calculates the amount of interest you’ll pay over the course of the loan, which will indicate the extra cost you are bearing for taking out the loan.
Step 1. Choose Your Credit Score
With this calculator, your interest rate will be estimated based on your credit score range. If you don’t know your credit score, you can check it for free using Loans Canada Compare Hub.
Step 2. Choose Your Term Length
Motorcycle terms generally range between 12 to 84 months. A longer term will result in lower payments all else equal but will lead to more interest paid over the life of the loan. You can play around with the terms to see how it affects your payment amount and to see which terms work best for you.
Step 3. Enter Your Down Payment
This is the total amount that you will pay upfront. The amount you put down will reduce the amount you need to borrow. Ideally, your down payment should be between 10% – 20% but could be higher if you want. This will not only reduce the loan amount, but it can potentially help you secure better terms.
Step 4. Enter The Motorcycle Price
Under “Amount”, enter the cost of your motorcycle. This is the MSRP of the motorcycle, not the loan amount. For example, if you’re buying a $10,000 motorcycle and plan to put a $2,000 down payment, you’d need a loan of $8,000 to finance your motorcycle. The calculator will automatically do this calculation for you, all you need to do is enter the motorcycle price, which in this example is $10,000.
Step 5. Click Calculate
Once you’ve entered all the required details, you can click calculate. The calculator will then provide you with four numbers:
- Number of Payments – This is the total number of payments you’ll need to make over the course of your loan.
- Monthly Payment – This is the monthly payment you’ll need to make each month.
- Total Interest – This number represents how much interest you’ll pay over the life of the loan.
- Total Payment – This number is the total amount you’ll pay for the loan. It includes both the interest and principal.
With this motorcycle loan calculator, you’ll better understand the financial commitment and ramifications before deciding to make the purchase. Moreover, if the numbers make sense for you, you can go a step further and click the “See if you qualify” button to find out if you’re eligible for the loan.
What Motorcycle Loan Factors Affect Your Costs?
When it comes to loans, the details matter—a lot. Every piece of information you provide to a lender can influence your interest rates, and overall loan affordability. Let’s break it down with a numeric example to show how these factors play out. Keep in mind these are fictitious examples and actual loan and interest details may vary in the real world.
1. Loan Amount
The total amount you’re borrowing is the foundation of your loan. The higher the loan amount, the more time it may take you to pay off the loan, which can lead to more interest.
For example, if you borrow $15,000 with an interest rate of 10% and a loan term of 5 years (60 months), your monthly payment would be $319. In comparison, if you were to borrow $20,000 with all other factors remaining the same, your monthly payment jumps to $424.
Not only does your monthly payment increase, but your total interest cost also rises from ~$4,140 to $5,440.
2. Interest Rate
The interest rate you qualify for will heavily affect your monthly payments and the total cost of your loan. Generally, the better your finances and credit score, the better your interest rate will be.
Here’s an example of how a simple interest rate change can affect your motorcycle loan cost:
| Loan Amount | $15,000 | $15,000 |
| Interest Rate | 7% | 10% |
| Term | 5 years | 5 years |
| Monthly Payment | $297 | $319 |
| Total Loan Cost | $17,820 | $19,140 |
| Total Interest Paid | $2,820 | $4,140 |
In this example, a small 3% increase in the interest rate resulted in an extra $1,320 interest paid on the loan.
3. Loan Term
The loan term refers to the length of time you have to repay the loan. Generally, shorter terms have higher payments and lower overall interest costs. On the other hand, longer terms have lower payments and higher overall interest costs.
Here’s an example of how the term of the loan can affect your payments and interest paid.
- $15,000 loan, 10% down payment ($1,500), 10% interest rate, 5-year term = $287 monthly payment and $3,710 of interest.
- $15,000 loan, 10% down payment ($1,500), 10% interest rate, 10-year term = $178 monthly payment and $7,908 of interest.
4. Down Payment
The down payment is the upfront amount you pay toward the purchase, which helps reduce the loan amount and the overall cost of the loan. A large down payment can lead to better interest rates, as it reduces the lender’s risk. That said, saving for a large down payment can be time-consuming. In general a down payment of 10% – 20% is ideal.
Here’s an example of how your down payment can impact your payments and interest paid.
- $15,000 loan, 5-year term, 10% interest rate, 10% down payment ($1,500) = $287 monthly payment and $3,710 of interest.
- $15,000 loan, 5-year term, 10% interest rate, 20% down payment ($3,000) = $255 monthly payment and $3,300 of interest.
Benefits Of Using A Loan Calculator
Knowledge is power, and being armed with a loan calculator can help with the following:
Avoid Overborrowing
A motorcycle calculator can not only help you estimate your monthly payments, but show you how much it’ll cost overall. If you have a strict budget of $20,000, you can check which loan terms respect that budget.
For example, you may notice that you can afford a more expensive motorcycle if you can qualify for a low rate and choose a shorter repayment period. However, if you’re unable to get a low rate, and require a longer term to keep monthly payments low, you may need to choose a cheaper model to stick to your budget.
Here’s an example:
| Motorcycle Price | $17,000 | $15,000 |
| Down Payment | $2,000 | $2,000 |
| Loan Amount | $15,000 | $13,000 |
| Interest Rate | 7% | 12% |
| Term | 4 years | 5 years |
| Monthly Payment | $359.19 | $289.18 |
| Total Loan Cost | $17,241.12 | $17,350 |
| Total Interest Paid | $2 241.30 | $4 350.67 |
| Total Cost (loan + down payment) | $19,241.12 | $19,350 |
Compare Loan Offers
It’s common for dealerships and lenders to promote low monthly payments to attract buyers, however, these offers often come at a cost. For example, to keep these monthly payments low, they may extend the loan term to 84 or 96 months. This means, that while monthly payments may be low, you’ll still paying more over the life of the loan, as seen in the example above.
Plan For Other Costs
Once you know your monthly payment, you’ll be better able to budget for other expenses such as insurance, maintenance, equipment and fuel.
Negotiate Confidently
When you use a motorcycle loan calculator, you’ll know exactly what you can afford before you step into a dealership. This can help you avoid feeling pressured by sales tactics and being tricked by flashy promotions. For example, if you’ve determined that you can comfortably afford payments under $300/month and at what terms, you’ll be better able to negotiate.
Bottom Line
A motorcycle loan calculator isn’t just a tool—it’s your financial co-pilot. By testing different scenarios, you’ll find a loan that lets you enjoy the ride without stressing your budget.
Ready to take the wheel? Try our Motorcycle Loan Calculator today. It’s free, fast, and no commitment required!
