Boat Loan Calculator
Compute the monthly payment on a boat loan given loan amount, annual rate, and term in years. Uses the standard fixed-payment amortization formula.
Last updated: September 2026
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About this calculator
A boat loan is an ordinary fixed-term installment loan, priced like a car loan but with longer terms (often 10–20 years for larger craft) and slightly higher rates because a boat depreciates faster and is easier to move out of the lender's reach. The monthly payment formula is the same one used for mortgages and auto loans: M = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where r is the monthly rate (annual rate / 12), n is the number of monthly payments (years × 12), and P is the amount borrowed.
Typical 2025-era boat loan rates are 7–10% APR for prime borrowers; subprime pricing runs 12%+. Down payments of 15–20% are standard, and lenders usually cap loan-to-value at 90% of the boat's surveyed value.
Beyond the loan payment, plan for the marina slip fee, winter storage, insurance, and maintenance — the old saw is that annual ownership cost is 10% of the boat's price. This calculator only handles the principal-and-interest slice; slot the rest into the total-cost-of-ownership picture separately.
How to use
Example — a $25 000 boat, 7% APR, 10-year term. Enter loanAmount = 25 000, rate = 7, termYears = 10. Monthly rate = 7/100/12 = 0.005833. n = 120 months. (1 + 0.005833)^120 ≈ 2.0097. Payment = 25 000 × 0.005833 × 2.0097 / (2.0097 − 1) ≈ $290.30 per month. Total paid = 290.30 × 120 = $34 836, so interest over the life of the loan is $9 836. Example — same boat, 15-year term instead. termYears = 15. Payment drops to ~$225/month, but total interest jumps to $15 500. The longer term lowers the check but costs more over time. Compare against a personal-loan APR at /en/calculators/financial/apr-calculator/ to see whether the boat-secured rate is actually better.
Frequently asked questions
Why are boat loan rates higher than car loans?
Boats depreciate faster, are used less often (so problems surface later), and can be moved across state lines or offshore, all of which increase the lender's risk. Rates typically run 1–2 percentage points above auto loans of the same credit tier. The gap narrows for very expensive craft that lenders class as collateralized 'yacht loans'.
Can I get a longer term for a bigger boat?
Yes — 15- and 20-year boat loans are common on boats over $50 000. Lenders scale the maximum term to the boat's expected useful life; a small fibreglass runabout usually caps at 10 years, a large cruiser can stretch to 20. Longer terms lower the payment but increase total interest paid.
Do I need a marine survey?
For used boats above roughly $10 000, lenders and insurers almost always require a marine survey — a professional inspection of the hull, engine, and systems. It costs $500–$1 500 and is treated separately from loan fees (not a finance charge under Reg Z). Feed those charges into the boat's total cost-of-purchase, not into the APR calculator.
Is loan interest tax-deductible?
In the US, if the boat qualifies as a 'second home' (has sleeping, cooking, and toilet facilities), the mortgage-interest deduction can apply to the boat loan, subject to the same limits as a real-estate second home. Consult a tax professional for your specific case; the rules changed materially in the 2017 Tax Cuts and Jobs Act.