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Boat Loan Calculator

Calculate the monthly repayments and interest on your boat loan and work out your budget.

Disclaimer: Whilst every effort has been made in building our calculator tools, we are not to be held liable for any damages or monetary losses arising out of or in connection with their use. Full disclaimer.

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How much does a boat cost?

New boat prices depend on the type, size and model, whereas previously-owned boat values vary with age. A small recreational boat can cost anywhere from a few thousand dollars for something pre-owned to many tens of thousands of dollars for something new.

As well as the initial purchase price, it's worth being aware of the annual costs associated with owning a boat. These include costs for maintenance, insurance, storage or mooring and fuel, as well as any loan fees and interest. It is said that the annual costs to keep a boat can be around 10% of the boat’s value. 1

How do boat loans work?

Boat loans work similarly to vehicle loans or home mortgages. A lender provides the capital for the purchase of the boat, and the borrower repays the loan amount plus interest (calculated at an agreed interest rate) for the life of the loan.

The most popular types of boat loans are:

  1. Secured loan through a marine dealership. Possibility of lower interest rates, extended warranties and other boat manufacturer promotions.
  2. Secured loan from a lender. Banks, credit unions and online lenders offer secured boat loans; some even specialize in marine finance.
  3. Home equity loan. An option if your home is worth more than the mortgage balance – but secured against payment default.
  4. Home equity line of credit. This type of property-secured loan features revolving credit and variable interest.
  5. Unsecured loan. Comes with more freedom to buy the boat of your choice, but interest rates tend to be higher.

Loan repayments are usually in monthly installments. Generally, unsecured personal loans are for sums up to $50,000.  Investopedia has a very good article discussing what to look for.

How much are boat loan payments?

Monthly repayments depend on the amount financed, loan term and applicant's credit score. A $30,000 speedboat financed for five years at an APR of 4 percent currently costs around $553 per month. You can use our boat loan calculator, at the top of our page, to calculate what your loan repayments might be for your boat.

What is a good interest rate for a boat loan?

Loan interest has increased recently in line with federal interest rates. The actual amount you pay depends on the lender, credit rating and sum advanced. 

A borrower with a good credit history may be able to obtain finance at an interest rate of 4 to 5 percent for a new or used boat. 2

What is the average length of a boat loan?

Most boat owners finance their craft for terms of 10 to 20 years, i.e. longer than typical automotive loans. Such agreements stem from bank and lender recognition that well-maintained boats tend to retain their value well. 

How can I get a boat loan?

Boat financing can be obtained through a yacht dealer, a loan from a bank or through a loan with a marine financing specialist. 3 Lenders prefer borrowers with a credit score of at least 600 and a low debt-to-income ratio. Nonetheless, certain financiers do work with individuals who have lower credit scores. 

Before authorizing boat loans, lenders check applicants' credit ratings and ask for information such as:

  • Name, address and telephone number.
  • Date of birth.
  • Social Security number.
  • Employment details.
  • Regular income.
  • Monthly housing costs.
  • Marine survey, i.e. a boat inspection (pre-owned craft).

Except for new craft, lenders usually require a survey before advancing a secured loan. 

Finally, buying a boat is a significant financial commitment – so it is advisable to check monthly outgoings beforehand. You may also wish to discuss the idea with an independent financial advisor.

Calculator by Alastair Hazell.


  1. How much does it cost to own a boat?, BoatsAndOutboards.co.uk.
  2. Best boat loans, Investopedia.
  3. Financing your boat, Promarine Finance.

If you have any problems using our boat loan calculator, please contact us.