Estimate your monthly caravan finance payment, total interest, and full amortisation schedule.
Rates as of Q2 2025 (example)
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A caravan loan calculator estimates your monthly payment, total interest, and full amortisation schedule for financing a touring caravan, motorhome, or static caravan, taking into account your deposit, any trade-in value, admin fees, and an optional extra monthly payment to pay off the loan faster.
The amount you need to borrow is the caravan's price, minus your deposit and any trade-in value, plus any admin fees added to the loan. This calculator then applies the standard amortising loan formula to that amount over your chosen term, with any extra monthly payment reducing the principal faster and cutting total interest.
Formula: Loan Amount = Caravan Price − Deposit − Trade-in Value + Admin Fees. Monthly Payment = Loan Amount × [r(1+r)n] ÷ [(1+r)n − 1], where r is the monthly interest rate (APR ÷ 12 ÷ 100) and n is the number of monthly payments (Loan Term × 12).
Example: A £25,000 caravan with a £3,000 deposit, no trade-in, and £100 in admin fees gives a loan amount of £22,100. At a 9% APR (example rate — enter your actual rate from a quote) over 7 years, the monthly payment would be roughly £355.57, with total interest of about £7,768 over the full term (total repaid around £29,868). (Note: all figures in this example are for illustration purposes only and do not represent a loan offer.)
Caravan and motorhome loans are typically secured against the vehicle or caravan itself, similar to a car loan — this can offer more competitive rates than unsecured borrowing, but means the lender can repossess the caravan if repayments aren't kept up. There's an important distinction between touring caravans and motorhomes (which are vehicles that can be financed similarly to cars) and static caravans (which are typically sited permanently on a holiday park and are usually considered personal property rather than real estate, even though they can't easily be moved) — static caravans generally can't be financed with a mortgage, and loans for them work more like a personal loan or hire purchase agreement secured against the caravan. If you're considering a static caravan on a holiday park, remember that ongoing site fees (often a significant annual cost, separate from the loan repayment) and the caravan's depreciation (static caravans typically lose value over time, unlike land or bricks-and-mortar property) are important parts of the total cost of ownership that this calculator doesn't capture. As with other vehicle and leisure finance, comparing the representative APR across lenders gives a more complete picture than comparing headline interest rates alone.
Generally, no — static caravans are usually classed as personal property (like a vehicle) rather than real estate, even though they're not easily moved once sited. Financing for a static caravan typically works more like a personal loan or hire purchase agreement secured against the caravan itself, rather than a mortgage secured against land or a building.
Touring caravans and motorhomes are vehicles (or vehicle-towed items) and can typically be financed similarly to a car, often through hire purchase or a secured loan. Static caravans, which are sited permanently on a holiday park, are usually financed through personal loans or hire purchase agreements specific to leisure finance, reflecting their different legal status as personal rather than real property.
For a static caravan on a holiday park, annual site fees (sometimes called pitch fees) can be a significant ongoing cost, separate from the loan repayment, and these often increase over time. For touring caravans and motorhomes, consider insurance, storage costs, servicing, and running costs (fuel for motorhomes, or towing costs for touring caravans). None of these are included in this calculator's figures.
Yes, generally — caravans and motorhomes typically lose value over time, often most quickly in the first few years, similar to cars. Static caravans on holiday parks can also depreciate, and some parks have age limits on caravans they'll allow to remain on site, which can affect long-term value. This is worth considering when choosing a loan term, to avoid owing significantly more than the caravan is worth for an extended period.
In this calculator, admin fees are added to the loan amount, meaning you pay interest on the fee as well as the caravan's price (minus deposit and trade-in). Some lenders instead require fees to be paid upfront — check your specific loan offer to see how fees are structured, as this affects both your loan amount and total cost.
The interest rate is the cost of borrowing the principal amount. The APR (Annual Percentage Rate) is a more complete figure that includes most mandatory fees as well as interest, expressed as an annual rate — this makes the APR a better figure for comparing loan offers from different lenders, since a lower headline interest rate with high fees could have a higher APR than a slightly higher rate with no fees.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a loan offer or financial advice. The default interest rate is a sample value and does not reflect rates currently available from any specific lender. Caravan and motorhome finance terms, fees, and eligibility vary by lender and depend on your individual circumstances and the caravan being financed. This calculator does not include ongoing costs such as site fees, insurance, or depreciation. Always obtain a personalised quote from a lender before making borrowing decisions.