The maths, with your numbers
What paying extra would do
Every dollar above the payment comes straight off the balance, so the interest stops being charged on it. These are worked out from the loan above.
How the balance falls
The same loan over different terms
| Term | Payment | Total interest | Total repaid |
|---|
A longer term lowers the payment and raises the interest. Your loan is highlighted.
Amortization schedule
Where each payment goes, from the first to the last.
RV loans run longer than almost any consumer loan except a mortgage. Published credit union terms reach 180 months on newer units above a minimum loan size, and 240 months on the largest. That is what makes the payment look manageable on a $120,000 motorhome.
What the long term costs
Use the term table above before you agree to anything. On the same rate, stretching an RV loan from 10 years to 15 adds about half as much again to the interest. The payment falls; the cost does not.
Lenders tier the terms by the age of the unit: newer than three years gets the longest term, older units get 120 months or less.
The second-home deduction
An RV with sleeping, cooking and toilet facilities can qualify as a second home for the mortgage interest deduction, provided the loan is secured by it. The IRS's definition of a home covers a “house trailer” or similar property with those facilities. It only helps if you itemise, and you cannot claim more than one second home.
Things the payment does not include
- Insurance, which is higher than a car's.
- Storage, campsite fees and fuel at single-digit miles per gallon.
- Depreciation, which is steep in the first few years and is why a long loan can leave you upside down.
Quick answers
What is the payment on a $120,000 RV loan?
At 7.75% over 15 years it is about $1,129 a month. Over 10 years it is around $1,437, and you save roughly $50,000 in interest.
How long can an RV loan be?
Published credit union terms reach 180 months on newer units above a minimum loan size, with 240 months on the largest, and shorter terms on older RVs.
Is RV loan interest tax deductible?
It can be if the RV has sleeping, cooking and toilet facilities, qualifies as your second home and the loan is secured by it. Ask a tax professional.
Do RVs hold their value?
Not well in the early years, which is why a long loan can leave you owing more than the RV is worth.
Sources
- Federal Reserve G.19, Terms of Credit, consumer loan rates (Q2 2026)
- Unitus Community Credit Union, recreational loan terms (May 2026); Connexus Credit Union, recreational loan terms
- IRS Publication 936, what counts as a qualified home for the mortgage interest deduction
- CFPB, prepayment penalties