# What will my boat loan cost?

Computes the monthly payment, total interest, payoff date, and full payment schedule of a fixed-rate loan for the boat.

- Page: https://www.acalculator.org/finance/boat-loan-calculator
- JSON spec: https://www.acalculator.org/finance/boat-loan-calculator.json
- Version: 6d6a0a9fabcf

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Price of the boat | The price of the boat before tax and fees. |
| down | Cash down | The cash you pay up front, which lowers the amount you borrow. |
| trade | Trade-in value | What the dealer pays for your current vehicle. It lowers the amount you borrow and the taxed price. |
| rate | Interest rate (APR) | The yearly interest rate of the loan. The monthly rate is this divided by 12. |
| start | Loan start date | The day the loan starts. The first payment is one month later. Leave it empty to number the payments without dates. |
| term | Length of loan (months) | The number of monthly payments, from 1 to 240. |
| tax | Sales tax rate | The sales tax rate, charged on the price minus the trade-in value. |
| fees | Dealer and registration fees | Fees and add-ons charged on top of the price, for example documentation and registration. |
| taxin | Roll tax and fees into the loan | When on, the sales tax and fees are borrowed. When off, you pay them up front. |
| extra | Extra each month | An extra amount paid with every payment. It goes straight to the balance. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Your monthly payment | The level monthly payment that repays the loan over its length, without extra payments. |
| payments | Number of payments | How many monthly payments it takes to repay the loan, with any extra payments. |
| payoff | Paid off in | The month of the last payment, when a start date is given. |
| each | You pay each month | The monthly payment plus any extra amount. The last payment is whatever is left, so it can be smaller. |
| span | Payments last | How many months of payments it takes to repay the loan, with any extra payments. |
| amount | Loan | The amount borrowed: price minus cash down and trade-in, plus tax and fees when rolled in. |
| interest | Interest | All the interest paid over the life of the loan. |
| paid | Total you’ll repay | The amount borrowed plus all the interest. |
| upfront | Paid up front | Cash down, plus the sales tax and fees when they are not rolled into the loan. |
| cost | What the boat really costs | The price plus sales tax, fees, and all the interest. |
| saved | Interest saved by paying extra | The interest the extra monthly amount saves, compared with no extra payments. |
| sooner | Months saved by paying extra | How many months sooner the loan is paid off with the extra monthly amount. |

## 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.

## Assumptions

- 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

1. price = $40,000.00, down = $8,000.00, trade = $0.00, rate = 7.5%, term = 72, start = 2026-10-01 gives amount = $32,000.00, payment = $553.28, interest = $7,836.42, payoff = 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/.
2. price = $100,000.00, down = $20,000.00, trade = $0.00, rate = 5%, term = 120, start = 2026-10-01 gives amount = $80,000.00, payment = $848.52, interest = $21,822.89, payoff = 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/.
3. price = $100,000.00, down = $20,000.00, trade = $0.00, rate = 5%, term = 240, start = 2026-10-01 gives payment = $527.96, interest = $46,711.50, payoff = 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/.
4. price = $25,000.00, down = $0.00, trade = $0.00, rate = 0%, term = 60, start = 2026-10-01 gives payment = $416.67, interest = $0.00, paid = $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/.

## FAQ

### 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.

## Sources

- IRS Publication 936, Home Mortgage Interest Deduction (a home includes a boat with sleeping, cooking, and toilet facilities). https://www.irs.gov/publications/p936
- 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/
- Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3 (loan payment and amortization schedule).