Purchasing a recreational vehicle is a major investment, often comparable to buying a home. Unlike standard auto loans, RV financing offers longer terms—sometimes up to 20 years—which makes calculating your monthly obligation essential for long-term financial planning.
How Your RV Payment is Calculated
This calculator uses the standard amortization formula to determine your monthly payment based on five key variables:
Purchase Price: The negotiated price of the motorhome, camper, or trailer.
Down Payment: Lenders typically look for 10% to 20% down to secure the best interest rates.
Interest Rate: RV rates are usually slightly higher than auto loans because RVs are considered luxury items.
Loan Term: While 10 years is common, luxury motorhomes often qualify for 15 or 20-year terms.
Sales Tax: Most buyers forget to include sales tax in their financing; this calculator adds it to the principal to reflect a realistic loan balance.
Realistic Example: Financing a Travel Trailer
If you purchase a new travel trailer for $45,000 with a $5,000 down payment at a 7% interest rate over 10 years (and 6% sales tax), your financials would look like this:
Total Sales Tax: $2,700
Financed Amount: $42,700
Estimated Monthly Payment: $495.78
Total Interest over life of loan: $16,793
Tips for Lowering Your RV Payments
To reduce the total cost of your RV, consider increasing your down payment to avoid "gap" insurance and lower your loan-to-value ratio. Additionally, because RVs depreciate quickly, opting for a shorter term (like 5 or 7 years) can help ensure you don't owe more than the vehicle is worth (being "upside down") in a few years.
function calculateRVLoan() {
var price = parseFloat(document.getElementById('rvPrice').value);
var down = parseFloat(document.getElementById('downPayment').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var years = parseInt(document.getElementById('loanTerm').value);
var taxRate = parseFloat(document.getElementById('salesTax').value);
if (isNaN(price) || isNaN(down) || isNaN(rate) || isNaN(years) || isNaN(taxRate)) {
alert("Please enter valid numerical values in all fields.");
return;
}
// Calculate tax and total loan principal
var salesTaxAmount = price * (taxRate / 100);
var loanAmount = (price + salesTaxAmount) – down;
if (loanAmount <= 0) {
alert("Down payment cannot exceed the total cost including tax.");
return;
}
// Financial math
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = years * 12;
var monthlyPayment;
if (rate === 0) {
monthlyPayment = loanAmount / numberOfPayments;
} else {
monthlyPayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
var totalCostOfLoan = monthlyPayment * numberOfPayments;
var totalInterestPaid = totalCostOfLoan – loanAmount;
var totalOutOfPocket = totalCostOfLoan + down;
// Update UI
document.getElementById('monthlyPaymentDisplay').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLoanAmount').innerText = '$' + loanAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalSalesTax').innerText = '$' + salesTaxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInterest').innerText = '$' + totalInterestPaid.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalCost').innerText = '$' + totalOutOfPocket.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('rvResults').style.display = 'block';
}