Boat Loan Calculator: See Your Payments (in < 30 sec)

Updated July 22, 2022

If you are in the market to buy a boat, not only do you want to find a vessel that matches your lifestyle, but you also want to find a boat that fits your budget. A boat loan calculator is a perfect tool to help you determine what your monthly payments will look like when financing a yacht.

How To Use Our Boat Loan Calculator

First things first, you will need to gather some financial information such as the loan amount or desired amount, loan term, and interest rate. Once you have all the details, navigate to the boat loan calculator below and plug the correct numbers into the designated value field (exclude commas or decimal points) to generate your estimated monthly payment on a boat loan. You can also calculate the total loan amount with interest included.

For example, monthly payments on a $100,000 loan, with a term of 15 years, and an interest rate of 5%, is around $791 per month with an estimated total payment of $142,342.85.
Go To Boat Loan Calculator

Boat Loan Calculator Tips:

When using the calculator, be sure to include as much detail as possible including any sales tax and add-ons or options.

Lenders grant the best rates to top-tier credit customers with a credit score of 800 and above. You can still be approved for a boat loan with a lower credit score, however, the rate may be higher, and/or the down payment required may be higher as well. But again, remember that the year of the vessel, down payment amount, term, and amount financed also heavily drive the interest rate.

Typically rates will decrease as the loan amount increases

Rates will also usually decrease with a lower term.

A loan term is the amount of time you have to pay back a boat loan. Loan repayment terms are dependent on the amount financed, credit profile, and the year of the vessel. The maximum term offered by marine lenders these days is 20 years, which you typically will find on financed amounts over $100,000. The longer the term, the lower the monthly payment.

Yacht Financing With Galati Yacht Sales

Galati Yacht Sales has over 50 years experience selling boats and yachts of all kinds. Our finance team is well versed in yacht financing and have access to every marine lender offering specialized yacht and boat loans. Whether purchasing a new, pre-owned, or brokerage yacht, our team will ensure the closing process is performed with the highest level of integrity. Shop yachts for sale worldwide or learn more about our yacht financing option and boat loans.

Frequently Asked Questions: Yacht Loans

Do I have to prove my income?

Depends on your credit profile and the amount financed. If you are financing over $250,000, yes you will always be asked for a “full financial package” which consists of your last two years of tax returns, a Personal Financial Statement, and Bank Statements. If you are a business owner, your business tax returns will also be requested. If you are financing a smaller amount under $250,000, you very well may qualify for a loan without proving your income. Again, that is subject to the lender’s review and approval.

Do boat loans have a prepayment penalty?

Most do not have a prepayment penalty. However, the lenders that do have a prepayment penalty usually have them for very short periods of time – 1-2 years. After that timeframe, you are free to pay off any time you like with no penalty.

How old of a boat can I finance?

Most lenders will finance boats that are within 20 model years old. There are lenders out there that will finance older vessels but they are few and far between.

Is it better to finance a new or used boat?

Both have advantages and disadvantages and largely depend on your budget, seeing that new boats often cost more. Talk to a certified yacht broker for more information.

Can I finance a yacht?

Yes, yachts can be financed. There are specialized lenders for yachts and they can be financed well into the millions of dollars.

How can I check the value of the boat I am buying?

Your yacht broker will be able to perform a market analysis and access sold boat data to help you determine the value of your yacht. In addition, of course, there is the survey value. If your boat is custom, the survey and market analysis are best to ascertain value.

How much boat can I afford based on income?

Most lenders’ payment-to-income ratio is between 12-15%. This means your monthly boat loan payment should not be over 12-15% of your gross monthly income. And most lenders’ total debt to income ratio maximum is 40%. This means all of your monthly debts, plus your new boat loan payment, divided by your gross monthly income should not exceed 40%. On larger loans, lenders may add in an operational expense as larger boats and the maintenance and expenses become substantial.

What is a good down payment on a boat?

When you get into loans over $100K, most lenders require 15-20% down. Loans over $2.5M require 25-30% down.

Can I deduct interest on my boat loan?

This is a good question for your accountant and depends on your personal scenario. But yes, many people can write off the interest expense.