';details+='Sales Tax: $'+taxCost.toFixed(2)+'
';details+='Total Interest Paid: $'+totalInterest.toFixed(2)+'
';details+='Total Cost of Boat (with interest): $'+(totalPayments+down+trade).toFixed(2);details+='
Where P = '+loanAmount.toFixed(2)+', i = '+(monthlyRate*100).toFixed(4)+'% monthly, n = '+term+' months.
Boat Loan Calculator Use
Setting sail on a new vessel is an exciting milestone, but navigating the financial waters requires precision. This boat loan calculator helps you estimate your monthly payments and total costs before you visit the dealership. By adjusting the variables below, you can see exactly how much boat you can afford and how different interest rates affect your long-term budget.
Marine financing differs from auto loans because boats often have longer terms (up to 15 or 20 years) and require different credit considerations. Use this tool to plan your down payment and trade-in strategy effectively.
- Boat Price
- The total purchase price of the watercraft, including dealer fees and preparation charges.
- Down Payment
- The amount of cash you plan to pay upfront. Most marine lenders require between 10% and 20% down.
- Interest Rate (APR)
- The annual interest rate charged by the lender. Rates for boat loans vary based on credit score, boat age, and loan amount.
- Loan Term
- The length of time you have to repay the loan, expressed in months. Typical boat loan terms range from 60 to 240 months.
How It Works
The boat loan calculator uses the standard amortization formula to calculate the fixed monthly payment. To find the loan principal, it subtracts your down payment and trade-in from the purchase price, then adjusts for state sales tax where applicable.
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M = Monthly Payment
- P = Principal Loan Amount (Price – Down Payment – Trade + Tax)
- i = Monthly Interest Rate (Annual Rate / 12)
- n = Total number of months in the loan term
Calculation Example
Example: Let's say you are buying a new center console boat for $75,000. You have a $15,000 down payment and a trade-in worth $5,000. Your state has a 6% sales tax on the net price (Price minus Trade). You secure a 120-month loan at 6.5% interest.
Step-by-step solution:
- Net Taxable Amount: $75,000 – $5,000 = $70,000
- Sales Tax: $70,000 × 0.06 = $4,200
- Loan Principal (P): $75,000 – $15,000 – $5,000 + $4,200 = $59,200
- Monthly Interest (i): 0.065 / 12 = 0.0054167
- Term (n): 120 months
- Monthly Payment: $59,200 [ 0.0054167(1.0054167)^120 ] / [ (1.0054167)^120 – 1 ] = $672.23
Common Questions
How long are typical boat loan terms?
Unlike car loans which usually cap at 72-84 months, boat loans can extend much further. For loans over $25,000, 10 to 15-year terms (120-180 months) are common. High-end yachts may even qualify for 20-year (240-month) financing.
What credit score do I need for a boat loan?
Marine lenders typically look for "prime" borrowers. While some specialty lenders handle scores in the 600s, the best interest rates usually go to those with scores above 720. Lenders also look at your debt-to-income ratio and previous installment loan history.
Are boat loans tax-deductible?
In some cases, yes. If the boat has sleeping, cooking, and toilet facilities, it may qualify as a second home. This allows you to deduct the interest paid on the loan from your federal income taxes. Consult with a tax professional to see if your specific vessel and financial situation qualify.