The Boat
Running Costs — the part that surprises people
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Boat Loan Calculator Guide
Boat loans are amortised like any other loan. What makes them different is the term, the depreciation and the running costs — and the running costs are usually what people get wrong.
Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
$50,000 at 7.5% over 15 years = $463.51 a month, with $33,431 of interest.
The same loan over 10 years costs $593.51 a month — but saves about $12,200.
The Payment Isn't the Cost
A $463 payment on a $60,000 boat sounds manageable. Then add mooring, insurance, winter storage, haul-out, bottom paint, servicing and fuel — commonly 10% of the boat's value every year, and that's before anything breaks.
On this default, running costs are $500 a month against a $463 payment. The boat costs more to keep than to buy. That's not unusual; it's the normal case, and it's what the payment figure hides.
Long Terms and Fast Depreciation Don't Mix
Marine lenders offer 15 and 20 year terms because it makes the payment look small. Meanwhile most boats lose a large chunk of value in the first few years.
Put those together and you're underwater — owing more than the boat is worth — for a long stretch in the middle. That only matters if you need to sell, but life is exactly the thing that decides you need to sell. Being unable to exit a purchase you no longer want is a specific and unpleasant position.
Secured Against the Boat
Most boat loans are secured, which is why the rate is better than a personal loan. It also means repossession is on the table if you can't pay. And unlike a car, a repossessed boat sells slowly and badly, so a shortfall after sale is common — you can lose the boat and still owe money.
What Lenders Look For
Typically 10–20% down, a marine survey on anything used, and proof of insurance before funds release. Older boats often face shorter terms and higher rates because the collateral is harder to value and to sell.
Rates vary widely by credit, boat age and lender — this uses whatever you enter, so get a real quote rather than trusting a default.
The Question Worth Sitting With
Work out the true monthly figure above, then compare it against chartering something similar for the handful of weekends you'll realistically use it. Sometimes ownership still wins. Often it doesn't, and the number makes that clear in a way enthusiasm won't.
Related: loan payment calculator, amortization calculator, car payment calculator.
These results are estimates for education and planning, not financial advice. Actual returns, rates, and terms vary — check with a qualified professional before making decisions.
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