How bike loan interest works
Interest is worked out each month on the balance you still owe, at one twelfth of the annual rate. Early payments are mostly interest; as the balance falls, more of each payment repays the loan.
Lenders may calculate interest differently (some charge it daily), so your actual interest can differ slightly.
Worked example
Borrowing £9,000 for a £10,000 bike at 9% over 48 months costs £223.97 a month and £1,750.34 in interest.
Paying less interest
A bigger deposit, a shorter term or a lower APR all cut the interest. Compare the total amount payable between offers.
Inputs for the bike loan interest calculator
Bike price
The price of the motorcycle.
Deposit
What you're paying upfront. A bigger deposit means borrowing less and paying less interest.
Interest rate (per year)
The annual interest rate on your finance. The rate shown is only an example, so enter the rate from your quote.
Term
How many months you'll repay over. A longer term means paying interest for longer.
CALCULATOR QUESTIONS
Bike loan interest calculator questions
How much interest is on bike finance?
Enter your details above. For example, £9,000 at 9% over 48 months costs £1,750.34 in interest.
Why do I pay more interest at the start?
Interest is charged on the balance you owe, which is highest at the start. As you repay, the balance falls and so does the interest.
Does a bigger deposit help?
Yes. Borrowing less reduces the interest.
What's the difference between the interest rate and the APR?
The interest rate is what's charged on the balance. The APR also includes most compulsory fees, so it's better for comparing the overall cost of different loans.