Boat Loan Calculator

Enter the price of the boat, your down payment and the lender's rate and term to see the monthly payment and the full cost of ownership at purchase, including sales tax and fees. Tick the option to roll tax and fees into the loan if your lender allows it; the payment rises, but less cash is needed upfront. Switch to Monthly Payment to work backward from what you can afford.

With the defaults, a $35,000 boat with $7,000 down leaves $28,000 to finance. At 7% over 10 years the payment is $325.10, and interest adds $11,012.45. Paying 8.25% sales tax ($2,887.50) and $2,800 of fees upfront brings the cash due at purchase to $12,687.50 and the all-in cost to $51,699.95.

Boat Loan

Boat loans are offered by banks, credit unions, specialist marine lenders and dealers. Most are secured by the boat, much like an auto loan, which keeps rates lower than an unsecured personal loan. Because boats can be expensive and hold their value reasonably well, terms are often longer than for cars: 10 to 15 years is common, and 20 years is available on larger vessels. Lenders typically want a down payment of 10% to 20%, a solid credit score and, for used or large boats, a marine survey.

A longer term lowers the payment but raises the total interest considerably, and a boat can depreciate faster than the loan balance falls in the early years. Small boats or older ones may only qualify for an unsecured personal loan, while expensive yachts are sometimes financed with a home equity loan, whose interest may be tax-deductible in limited cases. If the boat has a galley, berth and toilet, it can even qualify as a second home for mortgage interest deduction purposes; check with a tax adviser.

Loan = Price − Down − Trade-in (+ Tax + Fees if financed) PMT = Loan × r ÷ [1 − (1 + r)⁻ⁿ]

r

monthly interest rate (annual rate ÷ 12)

n

number of monthly payments

Fees Associated with Buying a Boat

The sticker price is only the start. Expect some or all of these one-time costs when you buy:

• Sales tax: charged by most states on the purchase price, sometimes capped for boats or applied as a use tax when you buy out of state.
• Loan origination fees: some lenders charge a percentage of the loan or a flat processing fee.
• Survey fees: a marine survey, similar to a home inspection, is often required by lenders and insurers for used boats and usually costs several hundred dollars or more depending on length.
• Title and registration fees: states require registration of motorized boats, and larger vessels may be documented with the U.S. Coast Guard.
• Documentation fees: dealers and brokers often charge for preparing the paperwork.
• Trailer costs: a trailer may be sold separately and needs its own registration.

Ongoing Costs of Boat Ownership

Boat owners often say the purchase is the cheap part. Budget for the yearly costs too, which commonly run around 10% of the boat's value:

• Loan payments: the monthly amount shown by this calculator, for the full term.
• Insurance: liability and hull coverage, often required by the lender and by marinas.
• Maintenance and repairs: engine servicing, winterizing, bottom cleaning and painting, and wear items.
• Fuel: boats burn far more fuel per mile than cars, and marina fuel is usually more expensive.
• Storage: a marina slip, dry stack, winter storage or space at home for a trailer.
• Gear and accessories: life jackets, safety equipment, electronics, covers and water toys.

Frequently asked questions

Sources

• Consumer Financial Protection Bureau – Consumer tools
• U.S. Coast Guard Boating Safety