Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Boats are usually financed for long terms because the price is high, and the long term is what makes the interest heavy. On $45,000 at 7.75 percent over 15 years, the payment is about $424 and the total interest about $31,243, or about 69 percent of the amount borrowed. The loan payment is also only part of owning a boat, since storage, insurance, fuel, maintenance and depreciation continue whether or not you use it.
Before you rely on it
What to check
Add the yearly cost of storage, insurance and upkeep to the payment before you decide what you can afford. Those costs are commonly a meaningful share of the boat's price each year.
The common error
Where people go wrong with boat loan calculator
Choosing a boat by the monthly payment alone. A long term keeps the payment low while the boat loses value faster than the loan is repaid.
Sensitivity evidence
How annual interest rate changes the monthly payment
| Annual interest rate | Monthly payment | Total interest |
|---|---|---|
| 5.8% | $374 | $22,263 |
| 6.8% | $398 | $26,678 |
| 7.8%worked example | $424 | $31,243 |
| 8.8% | $450 | $35,955 |
| 9.8% | $477 | $40,808 |
Every input, tested
Which input moves the monthly payment most
| Input | Tested from | To | Monthly payment at each end | Swing |
|---|---|---|---|---|
| Term | 11.0 years | 19.0 years | $508 to $378 | $130 (31%) |
| Loan amount | $40,500 | $49,500 | $381 to $466 | $85 (20%) |
| Annual interest rate | 6.8% | 8.8% | $398 to $450 | $52 (12%) |
Two variables at once
Monthly payment by annual interest rate and loan amount
| Annual interest rate \ Loan amount | $36,000 | $45,000 | $54,000 |
|---|---|---|---|
| 5.8% | $299 | $374 | $448 |
| 6.8% | $319 | $398 | $478 |
| 7.8% | $339 | $424 | $508 |
| 8.8% | $360 | $450 | $540 |
| 9.8% | $381 | $477 | $572 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Loan amount | $45,000 |
| Annual interest rate | 7.8% |
| Term | 15.0 years |
| Monthly payment | $424 |
| Total interest | $31,243 |
Complete evidence
Full amortization schedule
Show all 180 rows
| Payment | Opening balance | Principal | Interest | Ending balance |
|---|---|---|---|---|
| Payment 1 | $45,000 | $133 | $291 | $44,867 |
| Payment 2 | $44,867 | $134 | $290 | $44,733 |
| Payment 3 | $44,733 | $135 | $289 | $44,599 |
| Payment 4 | $44,599 | $136 | $288 | $44,463 |
| Payment 5 | $44,463 | $136 | $287 | $44,327 |
| Payment 6 | $44,327 | $137 | $286 | $44,189 |
| Payment 7 | $44,189 | $138 | $285 | $44,051 |
| Payment 8 | $44,051 | $139 | $284 | $43,912 |
| Payment 9 | $43,912 | $140 | $284 | $43,772 |
| Payment 10 | $43,772 | $141 | $283 | $43,631 |
| Payment 11 | $43,631 | $142 | $282 | $43,489 |
| Payment 12 | $43,489 | $143 | $281 | $43,347 |
| Payment 13 | $43,347 | $144 | $280 | $43,203 |
| Payment 14 | $43,203 | $145 | $279 | $43,059 |
| Payment 15 | $43,059 | $145 | $278 | $42,913 |
| Payment 16 | $42,913 | $146 | $277 | $42,767 |
| Payment 17 | $42,767 | $147 | $276 | $42,619 |
| Payment 18 | $42,619 | $148 | $275 | $42,471 |
| Payment 19 | $42,471 | $149 | $274 | $42,322 |
| Payment 20 | $42,322 | $150 | $273 | $42,171 |
| Payment 21 | $42,171 | $151 | $272 | $42,020 |
| Payment 22 | $42,020 | $152 | $271 | $41,868 |
| Payment 23 | $41,868 | $153 | $270 | $41,715 |
| Payment 24 | $41,715 | $154 | $269 | $41,561 |
| Payment 25 | $41,561 | $155 | $268 | $41,405 |
| Payment 26 | $41,405 | $156 | $267 | $41,249 |
| Payment 27 | $41,249 | $157 | $266 | $41,092 |
| Payment 28 | $41,092 | $158 | $265 | $40,934 |
| Payment 29 | $40,934 | $159 | $264 | $40,775 |
| Payment 30 | $40,775 | $160 | $263 | $40,614 |
| Payment 31 | $40,614 | $161 | $262 | $40,453 |
| Payment 32 | $40,453 | $162 | $261 | $40,291 |
| Payment 33 | $40,291 | $163 | $260 | $40,128 |
| Payment 34 | $40,128 | $164 | $259 | $39,963 |
| Payment 35 | $39,963 | $165 | $258 | $39,798 |
| Payment 36 | $39,798 | $167 | $257 | $39,631 |
| Payment 37 | $39,631 | $168 | $256 | $39,463 |
| Payment 38 | $39,463 | $169 | $255 | $39,295 |
| Payment 39 | $39,295 | $170 | $254 | $39,125 |
| Payment 40 | $39,125 | $171 | $253 | $38,954 |
| Payment 41 | $38,954 | $172 | $252 | $38,782 |
| Payment 42 | $38,782 | $173 | $250 | $38,609 |
| Payment 43 | $38,609 | $174 | $249 | $38,435 |
| Payment 44 | $38,435 | $175 | $248 | $38,259 |
| Payment 45 | $38,259 | $176 | $247 | $38,083 |
| Payment 46 | $38,083 | $178 | $246 | $37,905 |
| Payment 47 | $37,905 | $179 | $245 | $37,727 |
| Payment 48 | $37,727 | $180 | $244 | $37,547 |
| Payment 49 | $37,547 | $181 | $242 | $37,366 |
| Payment 50 | $37,366 | $182 | $241 | $37,183 |
| Payment 51 | $37,183 | $183 | $240 | $37,000 |
| Payment 52 | $37,000 | $185 | $239 | $36,815 |
| Payment 53 | $36,815 | $186 | $238 | $36,629 |
| Payment 54 | $36,629 | $187 | $237 | $36,442 |
| Payment 55 | $36,442 | $188 | $235 | $36,254 |
| Payment 56 | $36,254 | $189 | $234 | $36,065 |
| Payment 57 | $36,065 | $191 | $233 | $35,874 |
| Payment 58 | $35,874 | $192 | $232 | $35,682 |
| Payment 59 | $35,682 | $193 | $230 | $35,489 |
| Payment 60 | $35,489 | $194 | $229 | $35,295 |
| Payment 61 | $35,295 | $196 | $228 | $35,099 |
| Payment 62 | $35,099 | $197 | $227 | $34,902 |
| Payment 63 | $34,902 | $198 | $225 | $34,704 |
| Payment 64 | $34,704 | $199 | $224 | $34,505 |
| Payment 65 | $34,505 | $201 | $223 | $34,304 |
| Payment 66 | $34,304 | $202 | $222 | $34,102 |
| Payment 67 | $34,102 | $203 | $220 | $33,898 |
| Payment 68 | $33,898 | $205 | $219 | $33,694 |
| Payment 69 | $33,694 | $206 | $218 | $33,488 |
| Payment 70 | $33,488 | $207 | $216 | $33,281 |
| Payment 71 | $33,281 | $209 | $215 | $33,072 |
| Payment 72 | $33,072 | $210 | $214 | $32,862 |
| Payment 73 | $32,862 | $211 | $212 | $32,651 |
| Payment 74 | $32,651 | $213 | $211 | $32,438 |
| Payment 75 | $32,438 | $214 | $209 | $32,224 |
| Payment 76 | $32,224 | $215 | $208 | $32,008 |
| Payment 77 | $32,008 | $217 | $207 | $31,792 |
| Payment 78 | $31,792 | $218 | $205 | $31,573 |
| Payment 79 | $31,573 | $220 | $204 | $31,354 |
| Payment 80 | $31,354 | $221 | $202 | $31,133 |
| Payment 81 | $31,133 | $223 | $201 | $30,910 |
| Payment 82 | $30,910 | $224 | $200 | $30,686 |
| Payment 83 | $30,686 | $225 | $198 | $30,461 |
| Payment 84 | $30,461 | $227 | $197 | $30,234 |
| Payment 85 | $30,234 | $228 | $195 | $30,006 |
| Payment 86 | $30,006 | $230 | $194 | $29,776 |
| Payment 87 | $29,776 | $231 | $192 | $29,544 |
| Payment 88 | $29,544 | $233 | $191 | $29,312 |
| Payment 89 | $29,312 | $234 | $189 | $29,077 |
| Payment 90 | $29,077 | $236 | $188 | $28,842 |
| Payment 91 | $28,842 | $237 | $186 | $28,604 |
| Payment 92 | $28,604 | $239 | $185 | $28,365 |
| Payment 93 | $28,365 | $240 | $183 | $28,125 |
| Payment 94 | $28,125 | $242 | $182 | $27,883 |
| Payment 95 | $27,883 | $243 | $180 | $27,640 |
| Payment 96 | $27,640 | $245 | $179 | $27,395 |
| Payment 97 | $27,395 | $247 | $177 | $27,148 |
| Payment 98 | $27,148 | $248 | $175 | $26,900 |
| Payment 99 | $26,900 | $250 | $174 | $26,650 |
| Payment 100 | $26,650 | $251 | $172 | $26,398 |
| Payment 101 | $26,398 | $253 | $170 | $26,145 |
| Payment 102 | $26,145 | $255 | $169 | $25,891 |
| Payment 103 | $25,891 | $256 | $167 | $25,634 |
| Payment 104 | $25,634 | $258 | $166 | $25,376 |
| Payment 105 | $25,376 | $260 | $164 | $25,117 |
| Payment 106 | $25,117 | $261 | $162 | $24,855 |
| Payment 107 | $24,855 | $263 | $161 | $24,592 |
| Payment 108 | $24,592 | $265 | $159 | $24,327 |
| Payment 109 | $24,327 | $266 | $157 | $24,061 |
| Payment 110 | $24,061 | $268 | $155 | $23,793 |
| Payment 111 | $23,793 | $270 | $154 | $23,523 |
| Payment 112 | $23,523 | $272 | $152 | $23,251 |
| Payment 113 | $23,251 | $273 | $150 | $22,978 |
| Payment 114 | $22,978 | $275 | $148 | $22,703 |
| Payment 115 | $22,703 | $277 | $147 | $22,426 |
| Payment 116 | $22,426 | $279 | $145 | $22,147 |
| Payment 117 | $22,147 | $281 | $143 | $21,866 |
| Payment 118 | $21,866 | $282 | $141 | $21,584 |
| Payment 119 | $21,584 | $284 | $139 | $21,300 |
| Payment 120 | $21,300 | $286 | $138 | $21,014 |
| Payment 121 | $21,014 | $288 | $136 | $20,726 |
| Payment 122 | $20,726 | $290 | $134 | $20,436 |
| Payment 123 | $20,436 | $292 | $132 | $20,145 |
| Payment 124 | $20,145 | $293 | $130 | $19,851 |
| Payment 125 | $19,851 | $295 | $128 | $19,556 |
| Payment 126 | $19,556 | $297 | $126 | $19,259 |
| Payment 127 | $19,259 | $299 | $124 | $18,959 |
| Payment 128 | $18,959 | $301 | $122 | $18,658 |
| Payment 129 | $18,658 | $303 | $121 | $18,355 |
| Payment 130 | $18,355 | $305 | $119 | $18,050 |
| Payment 131 | $18,050 | $307 | $117 | $17,743 |
| Payment 132 | $17,743 | $309 | $115 | $17,434 |
| Payment 133 | $17,434 | $311 | $113 | $17,123 |
| Payment 134 | $17,123 | $313 | $111 | $16,810 |
| Payment 135 | $16,810 | $315 | $109 | $16,495 |
| Payment 136 | $16,495 | $317 | $107 | $16,178 |
| Payment 137 | $16,178 | $319 | $104 | $15,859 |
| Payment 138 | $15,859 | $321 | $102 | $15,538 |
| Payment 139 | $15,538 | $323 | $100 | $15,215 |
| Payment 140 | $15,215 | $325 | $98 | $14,889 |
| Payment 141 | $14,889 | $327 | $96 | $14,562 |
| Payment 142 | $14,562 | $330 | $94 | $14,232 |
| Payment 143 | $14,232 | $332 | $92 | $13,901 |
| Payment 144 | $13,901 | $334 | $90 | $13,567 |
| Payment 145 | $13,567 | $336 | $88 | $13,231 |
| Payment 146 | $13,231 | $338 | $85 | $12,893 |
| Payment 147 | $12,893 | $340 | $83 | $12,553 |
| Payment 148 | $12,553 | $343 | $81 | $12,210 |
| Payment 149 | $12,210 | $345 | $79 | $11,865 |
| Payment 150 | $11,865 | $347 | $77 | $11,518 |
| Payment 151 | $11,518 | $349 | $74 | $11,169 |
| Payment 152 | $11,169 | $351 | $72 | $10,818 |
| Payment 153 | $10,818 | $354 | $70 | $10,464 |
| Payment 154 | $10,464 | $356 | $68 | $10,108 |
| Payment 155 | $10,108 | $358 | $65 | $9,750 |
| Payment 156 | $9,750 | $361 | $63 | $9,389 |
| Payment 157 | $9,389 | $363 | $61 | $9,026 |
| Payment 158 | $9,026 | $365 | $58 | $8,661 |
| Payment 159 | $8,661 | $368 | $56 | $8,293 |
| Payment 160 | $8,293 | $370 | $54 | $7,923 |
| Payment 161 | $7,923 | $372 | $51 | $7,551 |
| Payment 162 | $7,551 | $375 | $49 | $7,176 |
| Payment 163 | $7,176 | $377 | $46 | $6,799 |
| Payment 164 | $6,799 | $380 | $44 | $6,419 |
| Payment 165 | $6,419 | $382 | $41 | $6,037 |
| Payment 166 | $6,037 | $385 | $39 | $5,652 |
| Payment 167 | $5,652 | $387 | $37 | $5,265 |
| Payment 168 | $5,265 | $390 | $34 | $4,876 |
| Payment 169 | $4,876 | $392 | $31 | $4,484 |
| Payment 170 | $4,484 | $395 | $29 | $4,089 |
| Payment 171 | $4,089 | $397 | $26 | $3,692 |
| Payment 172 | $3,692 | $400 | $24 | $3,292 |
| Payment 173 | $3,292 | $402 | $21 | $2,890 |
| Payment 174 | $2,890 | $405 | $19 | $2,485 |
| Payment 175 | $2,485 | $408 | $16 | $2,077 |
| Payment 176 | $2,077 | $410 | $13 | $1,667 |
| Payment 177 | $1,667 | $413 | $11 | $1,254 |
| Payment 178 | $1,254 | $415 | $8.10 | $839 |
| Payment 179 | $839 | $418 | $5.42 | $421 |
| Payment 180 | $421 | $421 | $2.72 | $0.00 |
Where the inputs come from
Enter the amount financed after the down payment, which lenders commonly want at 10% to 20% for boats. Include sales tax and dealer prep if they are rolled into the loan. Terms for boat loans often run 10 to 20 years for larger vessels, so the term input may be much longer than for a car. Use the rate quoted for a marine loan, which is usually a little above auto-loan rates.
When the result stops applying
Lenders may require marine survey or insurance for older or larger vessels. Loans on new boats are sometimes calculated with a different first-year rate, and registration or documentation fees can add to the amount financed. The model assumes level payments, so it does not reflect seasonal payment plans that some marine lenders offer.
What to compare it with
Compare the cost of financing with the cost of the alternatives, such as buying a less expensive boat, buying used, sharing ownership, or chartering. A boat depreciates fastest in its first years, so a long loan on a new boat can leave you owing more than it is worth. Add slip fees, insurance, fuel and winter storage to the payment to see the full monthly cost. Marine lenders generally require insurance, so get an insurance quote before you finalize the budget.
People also ask
Frequently asked questions
How long can a boat loan run?
Terms up to 15 or 20 years are common for higher-priced boats, while smaller boats often finance for shorter periods. Longer terms lower payments and raise total interest.
How much down payment do boat lenders want?
Most marine lenders expect a down payment, often 10% to 20% of the price, partly because boats lose value quickly in the first years. A larger down payment also lowers the rate some lenders offer and keeps you from owing more than the boat is worth.
Can I deduct boat loan interest?
Only in limited cases, such as when the boat qualifies as a second home with sleeping, cooking and toilet facilities. Confirm with a tax professional.