RV Loan Calculator

How it is calculated

The payment comes from the standard level-payment loan formula. The yearly rate is split into a monthly rate, and the same payment is made every month for the whole term:

r = annual rate ÷ 100 ÷ 12
payment = L × r ÷ (1 − (1 + r)−n)

Here L is the amount borrowed and n the number of monthly payments. With a 0% rate the payment is simply L ÷ n. Total paid is payment × n, and total interest is total paid minus L. The loan amount must be above zero, the rate between 0 and 100, and the term a whole number of months from 1 to 1,200; anything else shows no result. Enter the amount financed, which is the price minus your down payment; taxes, dealer fees, insurance and registration are not included unless you roll them into the loan amount. The rate is a nominal yearly rate compounded monthly, not a quoted APR with fees.

Common mistakes

• Entering the term in years. The field is in months, so 15 years must be typed as 180; typing 15 gives a payment of $5,954.12 over a 15-month loan.
• Typing the rate as a decimal. The field is a percentage, so write 7.5 for 7.5%; 0.075 is read as 0.075% and gives a payment of $474.90, close to the $472.22 of a zero-interest loan.
• Entering the sticker price instead of the amount financed. The down payment and any trade-in value must be subtracted first.
• Treating the result as the full monthly cost of owning the RV. Insurance, storage, maintenance and registration are all outside this payment.
• Comparing loans on the monthly payment alone. A longer term lowers the payment but raises the total interest sharply, so check the total interest line too.