A motorcycle purchase can be as expensive as buying a new car in some instances. Motorcycles can cost anywhere from a few hundred dollars to over $100,000. Depending on your credit rating, the interest rate on a motorcycle loan can range from 3 to over 15 percent. The length of the loan repayment plan might be anywhere from three to six years. If you want to quickly calculate what your monthly motorcycle loan payment would be for a particular bike, you can use a fixed-rate formula to find out.
Write down the terms of the loan. For example, you might need a $10,000 loan for four years at 12 percent interest. Write down the payment formula for a fixed-rate loan: (P (R /12 )) / (1 - (1 + r / 12 )^ -m), where P= principal, R=interest rate and m= total number of payments.
Convert the interest rate to a decimal: r = 0.12. Determine how many monthly payments (m) you will make over the course of the loan: 12 months x 4 years = 48 payments.
Plug your numbers into the formula. Using our example:
Monthly payments = (10,000 (0.12 / 12)) / (1 - (1 + 0.12)^ -48)
Use a calculator to solve the equation:
Monthly payments = $263.34.
