Boat Loan Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
Monthly payment of $493.12 for 15 years on $51,600 financed
| Term | Monthly payment | Total interest |
|---|---|---|
| 5 years | $1,046.26 | $11,176 |
| 7 years | $804.25 | $15,957 |
| 10 years | $626.05 | $23,526 |
| 12 years | $558.55 | $28,831 |
| 15 years (yours) | $493.12 | $37,161 |
| 20 years | $431.60 | $51,985 |
How to use the boat loan calculator
- Enter the price of the boat (with the motor and trailer if they are part of the deal) and your down payment.
- If you are trading in a boat, enter its value and any balance still owed on it.
- Enter your sales tax rate and fees, and choose whether they are financed or paid at purchase.
- Enter the APR and a term of 1 to 20 years. Add yearly running costs if you want an all-in monthly figure.
Boat loan formula
Monthly payment = A × r ÷ (1 − (1 + r)−n)
Monthly cost of ownership = payment + yearly running costs ÷ 12
A is the amount financed, r the APR ÷ 12 and n the number of months (years × 12). Boat loans are ordinary amortizing loans, so the formula is the same as for a car. The difference is the length: marine lenders often offer much longer terms than auto lenders, especially on larger loans for newer boats, and a long term changes the total cost dramatically.
Worked example: a $60,000 boat
With $12,000 down and 6% sales tax ($3,600) added to the loan, you finance $51,600. At 8% APR:
- Over 10 years the payment is $626.05 a month and the interest totals $23,526.
- Over 15 years the payment is $493.12 and the interest is $37,161.
- Over 20 years the payment falls to $431.60, but the interest grows to $51,985.
If you expect running costs of, say, $3,000 a year (your own figure for insurance, storage and maintenance), the 15-year loan works out at about $743.12 a month in total.
Monthly payment per $10,000 borrowed
| APR | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| 6% | $193.33 | $111.02 | $84.39 | $71.64 |
| 7% | $198.01 | $116.11 | $89.88 | $77.53 |
| 8% | $202.76 | $121.33 | $95.57 | $83.64 |
| 9% | $207.58 | $126.68 | $101.43 | $89.97 |
| 10% | $212.47 | $132.15 | $107.46 | $96.50 |
| 12% | $222.44 | $143.47 | $120.02 | $110.11 |
Multiply by the number of $10,000s you plan to borrow. Notice how little the payment falls between 15 and 20 years compared with how much longer you pay. If the lower payment is what makes the boat affordable, it is worth asking whether a less expensive boat, or a bigger down payment, would be the better choice.
Things to check before you buy
- Down payment. Boat lenders often ask for 10% to 20% down, and the requirement can depend on the loan size and the age of the boat. A bigger down payment also lowers the interest.
- Depreciation. On a long loan the boat may be worth less than you owe for many years. That matters if you want to sell or trade it in early.
- Taxes and registration. Sales or use tax and registration rules for boats differ by state, and some places also charge a yearly property tax on boats. Check with your state before you budget.
- Compare with other loans. A secured boat loan is often cheaper than an unsecured personal loan, but compare the APRs. For a vehicle, use the auto loan calculator.
Results are planning estimates. Your lender's disclosure gives the exact APR, amount financed and payment.
Frequently asked questions
What is the monthly payment on a $50,000 boat loan?
At 7.5% APR it is $593.51 a month over 10 years, $463.51 over 15 years or $402.80 over 20 years. The total interest rises from $21,221 to $33,431 to $46,671.
How long can you finance a boat?
Marine lenders commonly offer terms of up to 15 or 20 years, with the longest terms usually reserved for larger loans on newer boats. Smaller or older boats are often limited to shorter terms. Ask your lender what applies to the boat you are buying.
How much down payment do I need for a boat?
Many lenders look for 10% to 20% down, though requirements vary. On a $60,000 boat financed at 8% for 15 years, putting 20% down instead of 10% lowers the payment from about $516 to $459 a month (before tax and fees).
Is a 20-year boat loan a good idea?
It gives the lowest payment but the highest cost. Financing $51,600 at 8% costs $493.12 a month and $37,161 of interest over 15 years, against $431.60 a month and $51,985 over 20 years. Boats also lose value, so you may owe more than the boat is worth for years.
What costs besides the loan should I budget for?
Insurance, storage or slip fees, maintenance, fuel, registration and, in some places, a yearly property tax. Enter your own yearly estimate in the running costs field and the calculator adds it to the monthly payment.