Boat Loan Calculator
Estimate your monthly boat payment, total interest, and payoff schedule. Compare terms, down payments, and rates to find an affordable boat loan.
Boat & loan details
Applied to the taxable portion of the boat price.
Registration, documentation, delivery, etc.
Term, rate & options
Added to each monthly payment to pay off faster.
Show results in
Biweekly assumes 26 payments per year.
Results
Amount financed
$0
Estimated payment
$0 / mo
Total interest
$0
Total cost of loan
$0
Show amortization schedule
| # | Payment | Principal | Interest | Balance |
|---|
Compare different loan terms
| Term (years) | Payment | Total interest |
|---|
How this boat loan calculator works
This tool models a standard fixed-rate boat loan. It lets you include down payment, trade-in, taxes, and fees, and optionally add extra principal payments to see how quickly you can pay off your boat.
1. Amount financed
The calculator first determines how much you actually borrow:
Net price after trade-in:
\(\text{Net price} = \text{Boat price} - (\text{Trade-in value} - \text{Amount owed on trade-in})\)
Sales tax:
\(\text{Tax} = \text{Net price} \times \text{Tax rate}\)
Amount financed:
\(\text{Amount financed} = \text{Net price} - \text{Down payment} + \text{Tax} + \text{Fees financed}\)
2. Monthly payment formula
Boat loans are usually amortizing loans with equal payments. The payment is calculated using the standard loan formula:
Let:
- \(P\) = amount financed
- \(r\) = monthly interest rate = APR / 12 / 100
- \(n\) = total number of payments (months)
Payment:
\(\text{Payment} = P \times \dfrac{r(1+r)^n}{(1+r)^n - 1}\)
If you choose biweekly payments, the calculator converts the annual rate to a biweekly rate and uses 26 payments per year.
3. Extra payments and payoff time
When you add an extra principal amount to each payment, the calculator:
- Recalculates the amortization schedule with the higher payment.
- Stops when the balance reaches zero.
- Reports the new payoff time and interest savings compared with the standard schedule.
Tips for choosing a boat loan
Shorter vs. longer terms
- Shorter term: Higher payment, much less total interest, faster payoff.
- Longer term: Lower payment, easier on monthly cash flow, but more interest and higher risk of owing more than the boat is worth.
Down payment recommendations
- Many lenders require 10–20% down for boat loans.
- More down payment reduces your payment and interest and improves approval odds.
- A larger down payment helps offset depreciation, especially for new boats.
Other costs to budget for
- Insurance and registration.
- Storage, slip or marina fees.
- Fuel, maintenance, and repairs.
- Safety gear and accessories.
Use the calculator to find a comfortable payment, then make sure you can also afford these ongoing costs.
Boat loan calculator FAQ
How long can you finance a boat?
Terms commonly range from 3 to 20 years. Smaller or older boats may be limited to 5–10 years, while new, higher-priced boats can sometimes be financed for 15–20 years. Longer terms reduce the payment but increase total interest.
Are boat loans simple interest?
Most bank and credit union boat loans are simple interest, fixed-rate installment loans. Interest accrues on the outstanding balance, and each payment includes both interest and principal.
Can I pay off a boat loan early?
Many lenders allow early payoff without penalty, but some charge prepayment penalties. Check your loan agreement. The extra payment field in this calculator helps you see how much you could save by paying extra each month.
What is a good interest rate for a boat loan?
Rates depend on your credit, income, loan amount, term, and whether the boat is new or used. Borrowers with strong credit may see rates similar to auto loans, while lower credit scores or older boats can mean significantly higher rates. Always compare offers from multiple lenders.