';ans.innerHTML+='Total Loan Amount: $'+principal.toFixed(2)+'
';ans.innerHTML+='Total Interest: $'+totalInterest.toFixed(2)+'
';ans.innerHTML+='Total Cost (Price + Interest): $'+(v1+totalInterest).toFixed(2);if(showSteps){ans.innerHTML+='
';ans.innerHTML+='Total Loan Amount: $'+loanAmount.toFixed(2)+'
';ans.innerHTML+='Down Payment + Trade-In: $'+(v2+v3).toFixed(2);}}
Using the RV Loan Calculator
Whether you are eyeing a luxury Class A motorhome, a nimble camper van, or a spacious travel trailer, our RV loan calculator helps you plan your financial journey. Financing a recreational vehicle is similar to a mortgage because these vehicles often come with high price tags and long loan terms, sometimes up to 20 years.
By adjusting the variables below, you can see how different down payments and interest rates affect your monthly commitment.
- RV Purchase Price
- The total sticker price of the RV, including dealer fees and options.
- Down Payment
- The cash amount you pay upfront. Most RV lenders require between 10% and 20% down.
- Trade-In Value
- The value offered by a dealer for your current vehicle or RV which reduces the total loan amount.
- Interest Rate (APR)
- The annual percentage rate charged by the lender based on your credit score and the age of the RV.
- Loan Term
- How long you will take to repay the loan. Longer terms lower monthly payments but increase total interest paid.
How It Works: The Math Behind RV Financing
Our calculator uses the standard fixed-rate amortization formula to determine your monthly payment. Unlike simple interest, these loans compound monthly, meaning the interest is calculated based on the remaining principal balance each month.
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Monthly Payment
- P: Principal Loan Amount (Price – Down Payment – Trade-in)
- i: Monthly Interest Rate (Annual Rate / 12)
- n: Number of Months (Years × 12)
RV Loan Calculation Example
Scenario: You are purchasing a used 5th-wheel trailer for $65,000. You have $10,000 for a down payment and no trade-in. Your credit score secures you a 7% interest rate for a 12-year term.
Step-by-step solution:
- Loan Principal: $65,000 – $10,000 = $55,000
- Monthly Interest: 0.07 / 12 = 0.005833
- Total Months: 12 years × 12 = 144 months
- Calculation: $55,000 [0.005833(1.005833)^144] / [(1.005833)^144 – 1]
- Resulting Payment: $566.24 per month
Common Questions
How long are RV loan terms?
Standard terms range from 10 to 15 years, but for expensive motorhomes (over $100,000), many lenders offer 20-year terms to make the monthly payments more affordable.
Can I deduct RV loan interest on my taxes?
In many cases, yes. If your RV has basic sleeping, cooking, and toilet facilities, it may qualify as a second home. This allows you to deduct the interest under the mortgage interest deduction rules. Always consult a tax professional.
What credit score do I need for an RV loan?
Most specialized RV lenders prefer a score of 700 or higher. While you can get a loan with a score in the 600s, you will likely face significantly higher interest rates and require a larger down payment.
Tips for Saving Money on Your RV
To minimize the total cost of ownership shown by the rv loan calculator, consider these strategies:
- Buy Used: RVs depreciate rapidly. A 2-3 year old model can save you 30% or more compared to new.
- Refinance Later: If you start with a high rate due to credit, you can often refinance after 12-24 months of on-time payments.
- Shorten the Term: If you can afford it, choosing a 10-year term instead of a 20-year term will save you tens of thousands in interest.