The Boat Loan Calculator estimates the monthly payment and total cost of financing a boat, including down payment, trade-in, sales tax and fees.
Monthly payment: $325.10
| Monthly payment | $325.10 |
| Total loan amount | $28,000.00 |
| Sales tax | $2,450.00 |
| Upfront payment | $11,450.00 |
| Total of 120 payments | $39,012.45 |
| Total loan interest | $11,012.45 |
| Total cost (price, interest, tax, fees) | $50,462.45 |
Boat loans work much like car loans: a fixed amount repaid in monthly instalments, usually secured by the boat. Banks, credit unions, marine lenders and dealers all offer them. Because boats are luxury purchases, rates are often a little higher than auto loans, but terms can be much longer, 10 to 20 years for larger vessels.
Price, down payment, term and rate drive the payment. Sales tax and registration fees can be paid upfront or rolled into the loan. A typical lender wants 10–20% down.
Worked example (defaults): a $35,000 boat with $7,000 down, 7% for 10 years, tax and fees paid upfront. The $28,000 loan costs about $325 a month.
Beyond the loan, budget for insurance, storage or slip fees, winterization, maintenance (often 10% of the boat's value a year), fuel and trailering. Boats also depreciate quickly in the first few years, so a long loan can leave you owing more than the boat is worth.
Is boat loan interest tax-deductible? If the boat has sleeping, cooking and toilet facilities it may count as a second home.
New or used? Used boats are cheaper but may have higher rates and shorter terms.
What credit score do I need? Often 680 or higher for the best rates.