Motorcycle Loan

Free Motorcycle Loan calculator with clear step-by-step results.

About Motorcycle Loan

Handles the balloon structure common in motorcycle finance. Only the amount above the discounted present value of the balloon is amortised across the monthly payments, which is why a balloon lowers the monthly figure without reducing total interest proportionally.

Formulas

Amortised principal

Amortised = borrowed - balloon / (1 + r)^n

Monthly payment

Payment = amortised x r / (1 - (1 + r)^-n)

Worked example

With the default values below, Motorcycle Loan returns Monthly payment of $251.16. Change any input above and every figure here is recalculated in your browser.

Inputs used

Motorcycle priceminimum 0 $: 12,000 $
Depositminimum 0 $: 1,800 $
APRaccepts 0–40 %: 9.9 %
Termaccepts 6–84 months: 36 months
Final balloon paymentminimum 0 $: 3,500 $
Arrangement fee added to the loanminimum 0 $: 199 $

Results

Monthly payment: $251.16
Amount borrowed: $10,399.00
Total interest: $2,142.85
Total paid including deposit and balloon: $14,341.85

Step by step

1Values used
2Amortised principal
3Monthly payment
4Monthly payment= $251.16
5Amount borrowed= $10,399.00
6Total interest= $2,142.85
7Total paid including deposit and balloon= $14,341.85

Assumptions and limits

The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Illustrative only. Actual agreements include documentation fees, option-to-purchase fees, mileage limits on some products and rate variation by credit profile. Check the finance agreement.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Illustrative only. Actual agreements include documentation fees, option-to-purchase fees, mileage limits on some products and rate variation by credit profile. Check the finance agreement.

Frequently Asked Questions

Is a balloon payment a good idea?

It lowers the monthly cost but leaves a large sum due at the end, and you own nothing until it is paid. It only works if you will genuinely have the cash or intend to trade the bike in.

Why is total interest higher than expected?

Because the balloon keeps a large principal outstanding for the whole term, accruing interest the entire time rather than amortising away.