How to use the boat loan calculator
- 1 Enter the purchase price, down payment and any trade-in.
- 2 Enter sales tax and fees, and whether they are paid upfront or financed.
- 3 Enter the interest rate.
- 4 Choose the loan term and read your payment and total cost.
Worked example
A $60,000 boat with 10% down, 6% sales tax and $1,000 of fees paid upfront, at 8.5% for 15 years. The amount financed is $54,000 and the cash due at purchase is $10,600. The payment is $531.76 a month, with $41,716.69 of interest. Over 13 years the payment would be $573.04.
Financing a boat wisely
- Put 10% to 20% down.
- Compare marine lenders and credit unions.
- Budget 10% of the value a year for upkeep.
- Get a marine survey on a used boat.
Compare with a Personal Loan Calculator, tap home equity with the HELOC Calculator, and plan your budget with the Budget Calculator.
Features
Terms up to 20 years
Typical marine loan terms from 5 to 20 years.
Full cost
Sales tax, fees, interest and the cash due at purchase.
What-ifs
Payment with a 1% lower rate or a shorter term.
When to use it
Buying a first boat
Fit the payment into your budget with the Budget Calculator.
Comparing financing
Check the dealer's offer against a personal loan in the Personal Loan Calculator.
Towing vehicle
See the truck payment with the Car Loan Calculator.
Using home equity
Compare a HELOC with the HELOC Calculator.
Related Home and Auto tasks
Frequently asked questions
What is a typical boat loan term?
Usually 10 to 15 years for boats over about $25,000, and up to 20 years for larger boats. Smaller loans often have 5 to 7-year terms.
What credit score do I need for a boat loan?
Many marine lenders look for 680 or higher for the best rates; some lend with lower scores at higher rates.
How much down payment is needed for a boat?
Usually 10% to 20%. A larger down payment lowers the payment and helps avoid owing more than the boat is worth.
What are boat loan rates?
Rates depend on credit, the loan amount, the term and the boat's age, and are typically a few points above auto loan rates. Compare banks, credit unions and marine lenders.
Is boat loan interest tax-deductible?
It can be, if the boat has sleeping, cooking and toilet facilities and qualifies as a second home, and you itemize. The loan must be secured by the boat.
Do I pay sales tax on a boat?
In most states, yes, usually on the price minus any trade-in. Some states cap the tax on boats; a few have none.
Can I finance a used boat?
Yes. Lenders may limit the term or charge a higher rate for older boats and often require a marine survey.
What other costs come with owning a boat?
Insurance, storage or slip fees, fuel, maintenance, winterizing, registration and a trailer. A common estimate is 10% of the boat's value a year.
Is a secured or unsecured boat loan better?
A secured loan, using the boat as collateral, usually has a lower rate and a longer term. An unsecured loan avoids a lien but costs more.
Should I pay off a boat loan early?
Check for prepayment penalties. If there are none, extra payments cut interest, which is large on long terms.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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