What will my boat loan cost?
Find your monthly boat payment, the total interest, and the month the loan is paid off.
- Your monthly payment
- $848.52
Borrowing $80,000.00 at 5% APR over 120 months costs $848.52 a month, with $21,822.89 of interest in total.
- Number of payments
- 120
- Paid off in
- October 2036
- You pay each month
- $848.52
- Payments last
- 120 months
- Loan
- $80,000.00
- Interest
- $21,822.89
- Total you’ll repay
- $101,822.89
- Paid up frontCash down, plus tax and fees not in the loan
- $20,000.00
- What the boat really costsPrice, tax, fees and interest
- $121,822.89
- Months
- 120
Answer for the example date Monday, October 5, 2026. It changes to today's date when the page loads.
Your monthly payment: $848.52. Borrowing $80,000.00 at 5% APR over 120 months costs $848.52 a month, with $21,822.89 of interest in total.
How much of what you repay is interest?
Where does each payment go?
What does every payment look like?
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes the monthly payment, total interest, payoff date, and full payment schedule of a fixed-rate loan for the boat.
Example with the default inputs (Price of the boat $100,000.00, Cash down $20,000.00, Trade-in value $0.00, Interest rate (APR) 5%, Loan start date October 5, 2026, Length of loan (months) 120, Sales tax rate 0%, Dealer and registration fees $0.00, Roll tax and fees into the loan Yes, Extra each month $0.00) on the example date Monday, October 5, 2026: Borrowing $80,000.00 at 5% APR over 120 months costs $848.52 a month, with $21,822.89 of interest in total.
Method: payment = L × r ÷ (1 − (1 + r)^−n), with L the amount borrowed, r the APR ÷ 12, and n the number of months; each month, interest = balance × r and the rest of the payment lowers the balance.
- The rate is fixed for the whole loan and interest is charged monthly at APR ÷ 12.
- Payments are made at the end of each month, starting one month after the start date.
- Sales tax is charged on the price minus the trade-in value, as most US states do.
- Extra payments go straight to the balance; the last payment is whatever is left.
- Values are not rounded to the cent between months; only the display is rounded.
Worked examples
Each example is checked against the calculator on every build.
- Price of the boat $40,000.00, Cash down $8,000.00, Trade-in value $0.00, Interest rate (APR) 7.5%, Length of loan (months) 72, Loan start date 2026-10-01 gives Loan $32,000.00, Your monthly payment $553.28, Interest $7,836.42, Paid off in 2032-10-01.Source: Consumer Financial Protection Bureau, Can I prepay my loan at any time without penalty? https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/
- Price of the boat $100,000.00, Cash down $20,000.00, Trade-in value $0.00, Interest rate (APR) 5%, Length of loan (months) 120, Loan start date 2026-10-01 gives Loan $80,000.00, Your monthly payment $848.52, Interest $21,822.89, Paid off in 2036-10-01.Source: Consumer Financial Protection Bureau, Can I prepay my loan at any time without penalty? https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/
- Price of the boat $100,000.00, Cash down $20,000.00, Trade-in value $0.00, Interest rate (APR) 5%, Length of loan (months) 240, Loan start date 2026-10-01 gives Your monthly payment $527.96, Interest $46,711.50, Paid off in 2046-10-01.Source: Consumer Financial Protection Bureau, Can I prepay my loan at any time without penalty? https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/
- Price of the boat $25,000.00, Cash down $0.00, Trade-in value $0.00, Interest rate (APR) 0%, Length of loan (months) 60, Loan start date 2026-10-01 gives Your monthly payment $416.67, Interest $0.00, Total you’ll repay $25,000.00.Source: Consumer Financial Protection Bureau, Can I prepay my loan at any time without penalty? https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/
How the payment is worked out
The calculator uses the standard formula for a fixed-rate loan repaid in equal monthly payments:
payment = L × r ÷ (1 − (1 + r)^−n)
- L is the amount you borrow: the price, minus your cash down and trade-in value, plus the sales tax and fees when you roll them into the loan.
- r is the monthly rate: the APR divided by 12, written as a decimal (5% APR gives r = 0.05 ÷ 12).
- n is the number of monthly payments, from 1 to 240 (120 for a 10-year loan).
- At 0% APR the payment is simply L ÷ n.
Each month, the interest is the balance times r. The rest of the payment lowers the balance. The last payment is whatever is left, so the principal parts add up to exactly the amount borrowed. The total interest is the sum of the monthly interest amounts.
Assumptions
- The rate stays the same for the whole loan.
- The first payment is one month after the loan start date, and payments are made at the end of each month. The payoff month is the start date plus n months.
- Sales tax is charged on the price minus the trade-in value. Fees are added on top. Both start at 0.
- The tax and fees are borrowed when “Roll tax and fees into the loan” is on (the default). When it is off, they are paid up front with your cash down.
- An extra monthly amount is paid with every payment and goes straight to the balance. “Interest saved” compares the interest with n level payments and no extra.
- If the cash down and trade-in cover the price with the tax and fees, nothing is borrowed: the payment, the number of payments, and the interest are 0, and there is no payoff month.
- You pay each month is the payment plus the extra monthly amount (the payment alone when there is no extra). Payments last is the number of monthly payments, with any extra payments, in months. The answer sentence uses both (“over 58 months costs $612.50 a month”, “over 1 month”). The last payment is whatever is left, so it can be smaller.
- “Interest saved” and “Months saved” appear only when the extra is above 0 and something is borrowed.
- “What the boat really costs” is the price plus the sales tax, the fees, and all the interest.
- Values are not rounded to the cent from month to month. Only the display is rounded, so a lender’s schedule can differ by a few cents.
Worked examples by hand
A $40,000 boat with $8,000 down, 7.5% APR, 72 months. L = $32,000, r = 0.075 ÷ 12 = 0.00625 and n = 72. (1 + r)^−72 = 0.638522. The payment is 32,000 × 0.00625 ÷ (1 − 0.638522) = $553.28. The interest is 72 × 553.28 − 32,000 = $7,836.42. For a loan that starts on October 1, 2026, the last payment is in October 2032.
The page’s default: a $100,000 boat with $20,000 down, 5% APR, 120 months. L = $80,000, r = 0.05 ÷ 12 = 0.0041667 and n = 120. (1 + r)^−120 = 0.607161. The payment is 80,000 × 0.0041667 ÷ (1 − 0.607161) = $848.52. The interest adds up to $21,822.89. For a loan that starts on October 1, 2026, the last payment is in October 2036.
The same loan over 20 years. With n = 240, (1 + r)^−240 = 0.368645, so the payment is 80,000 × 0.0041667 ÷ (1 − 0.368645) = $527.96. The interest is $46,711.50, more than twice the 10-year loan’s. The last payment is in October 2046.
0% APR. A $25,000 boat with nothing down over 60 months costs 25,000 ÷ 60 = $416.67 a month, with no interest.
Other questions people ask
How is a boat loan different from a car loan?
While both are secured installment loans, boat loans have some unique characteristics: Loan Term: Marine loans often have longer terms than auto loans. Depending on the loan amount, terms of 15 to 20 years are common, which helps keep monthly payments manageable. Down Payment: The standard down payment for a boat is typically higher, often in the 10% to 20% range. Specialized Lenders: The marine industry has many lenders who specialize exclusively in boat and yacht financing, understanding the unique aspects of valuing and securing a vessel.
Is the interest on a boat loan tax-deductible?
In many cases, yes! A boat can qualify as a second home, allowing you to deduct the loan interest. To meet the IRS criteria, the boat must have a sleeping space (berth), a toilet (head), and cooking facilities (galley). If your boat qualifies and the loan is secured by it, you can deduct the interest as home mortgage interest when you itemize deductions. As tax laws can be complex, it's always best to consult with a tax professional to confirm your eligibility.
Does the type of boat I buy affect the loan?
Absolutely. Lenders will tailor the loan based on the boat's type, age, and value. A loan for a new $500,000 yacht will have different terms and requirements than a loan for a used $40,000 center console fishing boat. Lenders assess the risk and expected depreciation for different types of vessels, from ski boats and sailboats to large cruisers.
What are typical loan terms for a boat?
Loan terms are generally tied to the amount you borrow: Smaller Loans (< $25,000): 5-10 years. Mid-size Loans ($25,000 - $100,000): 10-15 years. Large Loans (> $100,000): Often up to 20 years. Remember that a longer term means a lower monthly payment, but you will pay more in total interest. Use our boat loan calculator to experiment with different terms and see the impact on your payment.
How much of a down payment is required for a boat?
Plan on a down payment of 10% to 20% of the purchase price. A larger down payment is highly recommended. It lowers your principal, reduces your monthly payment, can help you secure a better interest rate, and provides a buffer against depreciation.
What credit score do I need to get a boat loan?
For the best rates and terms, a credit score of 700 or higher is ideal. Most marine lenders look for strong credit histories. While some lenders may offer financing for scores in the high 600s, the rates will likely be higher. A strong credit profile demonstrates to lenders that you are a low-risk borrower.
What other costs should I budget for besides my monthly loan payment?
Boat ownership involves more than just the loan payment. Be sure to factor in these recurring expenses: Marine Insurance: Lenders will require you to carry a policy on the boat. Dockage/Slip Fees or Storage: Unless you can keep it on a trailer at home, you'll need to pay for a spot at a marina or a storage yard. Maintenance: Regular engine service, hull cleaning, and general upkeep are essential. Winterization: In colder climates, you must pay to have the boat professionally prepared for the off-season. Fuel: This can be a significant and variable cost. Taxes & Registration/Documentation: All boats require state registration, and larger vessels may need to be documented with the U.S. Coast Guard.
What is a marine survey and why do I need one?
A marine survey is a thorough inspection of a boat's condition and value, conducted by a certified marine surveyor. For almost all used boat loans, lenders will require a recent survey. This protects both the lender and you, the buyer, by ensuring the vessel is structurally sound, safe, and worth the price you are paying. Think of it as a home inspection for a boat.
Where can I get a boat loan?
You have several excellent options, and it's wise to compare offers: Specialized Marine Lenders: These companies focus solely on boat financing and often have the most competitive rates and expertise. Banks and Credit Unions: Many national banks and local credit unions offer boat loans, sometimes with favorable rates for existing customers. Dealership Financing: The boat dealer can arrange financing for you. This is convenient, but it's always a good idea to have a pre-approval from another lender to ensure you're getting the best deal.
Can I finance a used boat? Are there prepayment penalties?
Yes, financing used boats is very common. The lender will likely have limits on the boat's age and will require the marine survey mentioned above. Regarding early payoff, most marine loans are simple interest loans that do not have prepayment penalties. This allows you to make extra payments or pay off the entire loan early to save on interest. Always confirm this with your lender before signing the final loan documents.