RV Loan Calculator

RV Loan Calculator with amortization schedule is used to calculate the monthly payment for your recreational vehicle's loan. The camper loan calculator will estimate the monthly payments and the costs associated with owning an RV.

What is an RV loan?

An RV loan is a loan that helps borrowers buy a recreation vehicle or RV. The borrower will then pay back the lender in installment payments which contain principal and interest until the loan is paid off.

How does an RV loan work?

An RV loan is like an auto loan with subtle differences. Like an auto loan, RV loans usually have fixed interest rates meaning your monthly payments will stay the same through the course of the loan. However, RV loans are much larger than typical auto loans. Some recreational vehicles cost tens of thousands of dollars; in some cases, an RV loan is almost the size of a home mortgage.

How long is a typical RV loan?

Since an RV loan is usually much larger than an auto loan, the repayment term is also longer. A typical RV loan can last 10 to 15 years, whereas most auto loans are shorter than seven years.

Are RV loans harder to get than auto loans?

Yes, RV loans are harder to get approved than auto loans because RV loans are more expensive and lenders have a higher requirement for RV loans. Borrowers must have a good credit score with a sizable down payment to apply for an RV loan. They will also need to provide income proof, assets, and any debt they may have. Lenders want to see if the borrower is in good financial standing to repay the loan plus interest.

Are RV loans secured loans?

RV loans can be secured or unsecured. A secured RV loan uses the RV as collateral. If the borrower stops making payments, the lender will repossess his RV. An unsecured RV loan does not use the RV as collateral so lenders cannot repossess the RV when the borrower defaults. To justify the risks of nonpayment, the interest rate for an unsecured RV loan is much higher and the repayment term might be shorter.

How long is the RV term?

The average repayment period is from 10 to 15 years, but many lenders are willing to extend the term up to 20 years for qualified buyers with collateral and loan amounts exceeding $50,000.

How much down payment is required for an RV loan?

Most lenders require a downpayment of 20% or more. Some lenders that are specialized in RV finance may reduce the down payment to 10% to 15%, but the interest rate is generally higher with these types of lenders. To save money on interest payments, RV buyers should save at least 20% down payments for their RV.

What debt-to-income ratio is needed for an RV loan?

Most lenders will require the borrower to have a debt-to-income ratio or DTI lower than 40. DTI is a ratio that lenders use to decide whether a borrower has too much debt relative to his income. If a borrower has too much debt, he might not be able to repay the loan in a timely manner. Some lenders may approve borrowers with a DTI of 45, but their interest rate may be higher.

What credit score is needed for RV loans?

To get an RV loan, most lenders require a credit score of 670. Some lenders may approve RV loans for borrowers with a credit score as low as 550, but the interest rate is much higher as lenders are taking more risks with these borrowers. As a general rule, the better your credit score you have, the lower the interest rate you will get. To get the most competitive interest rate, borrowers will need a credit score of 700 or higher.

What is the minimum credit score required for RV loans?

The absolutely minimum credit score required for most RV loans is 550, but the interest rate will be much higher. Borrowers looking to get an RV loan should improve their credit score before applying for an RV loan to increase their chances of getting approved.

How to apply for an RV loan?

There are many sources that you can get an RV loan, online and traditional lenders such as banks and credit unions. You can also apply for an RV loan from the RV dealership which is usually the most convenient way to finance your RV, but they might not offer the best rates. The first thing you should do before applying for an RV loan is to get your credit report and credit score. Make sure that there are no errors on your credit report. Compare quotes and interest rates from different banks or credit unions online or offline. After you choose a lender that gives you the best interest rate, go to the RV dealership and ask them if they can beat that rate. If they can, you can get the RV loan from the dealership.

How to calculate monthly payments for RV loans?

The monthly payments for RV loans can be calculated just like any other loan using the formula below. Monthly Payment = (P * i) / (1 - 1/(1+i)^n)), where P = principal amount i = interest rate n = number of months for the RV term

RV loans monthly payment example

Let's say you applied for an RV loan of $100,000 with an interest rate of 8% and a 15-year term, following is how you would calculate the monthly payment for your RV loan. Monthly Payment = (P * i) / (1 - 1/(1+i)^n)) Monthly Payment = (100000*0.08) / (1-1/(1+0.08)^180)) Monthly Payment = $955.65 The monthly payment for this RV loan is $955.65. At the end of the loan, the borrower would pay a total interest payment of $72,017.38.

How to use the RV loan calculator?

The RV loan calculator will help you calculate your monthly payments and total payment, and generate an RV amortization schedule that borrowers can view and print. There are many optional functionalities that the RV loan calculator offers such as trade-in value, sales tax, monthly or biweekly payment plan, and extra payments to pay off the RV loan faster to save money on interest payments.