Boat Loan Calculator
With purchase price 55000 usd, down payment 8250 usd, trade-in value 0 usd, sales tax 6 percent and 3 more fields, boat loan comes to $478.01 — monthly payment. It is reached in 9 steps, the last of which is 50050 * 0.0066583 / (1 - pow(1 + 0.0066583, -180)), and each one is printed on the page with its numbers filled in. The formula is the one published by BoatUS, not an approximation fitted to it.
Monthly payment on a boat loan including sales tax and trade-in, plus the yearly running cost that decides whether the payment is the affordable part.
Formula and sources checked · How we check
Purchase price 55000, Down payment 8250, Sales tax 6, Interest rate 7.99
$478.01
Monthly payment for the example below. Editing a field recomputes the calculator below; this figure holds the answer the page was loaded with.
It is written into the HTML rather than drawn by a script, so a search engine reading this page without running JavaScript still finds an answer.
- Sales tax
55000 * 6 / 100$3,300- Amount financed
max(0, 55000 + 3300 - 8250 - 0)$50,050- Monthly payment
50050 * 0.0066583 / (1 - pow(1 + 0.0066583, -180))$478.01- Total of payments
478.01497 * 180$86,043- Total interest
86042.695 - 50050$35,993- Running cost a year
55000 * 10 / 100$5,500- Running cost a month
5500 / 12$458.33- Payment plus running cost
478.01497 + 458.33333$936.35- First year, all in
8250 + 478.01497 * 12 + 5500$19,486
Worked example
A $55,000 boat with $8,250 down and 6% sales tax finances $50,050. At 7.99% over 15 years that is $478.01 a month and $35,993 of interest. The trade’s 10% rule puts running costs at $5,500 a year, so the boat actually costs $936.35 a month, and the first year including the deposit costs $19,486.
How to work it out yourself
- 1.Finance the tax or pay it in cash, but decide deliberately — rolling it in is normal on marine loans and it adds interest to a charge that never appreciates.
- 2.Treat the running cost line as part of the payment. Slip fees, winter storage, insurance, bottom paint, fuel and the annual service are not optional, and on a 10% rule they cost about as much again as the loan.
- 3.A 15 or 20 year term keeps the payment low and leaves you underwater for years — boats depreciate faster than the balance falls. A larger down payment is the only clean fix.
Payment by term
| Term (years) | Monthly payment | Monthly payment | Total interest |
|---|---|---|---|
| 5 | $1,014.59 | $1,015 | $10,826 |
| 7 | $779.84 | $780 | $15,457 |
| 10 | $606.98 | $607 | $22,788 |
| 12 | $541.49 | $541 | $27,925 |
| 15 | $478.01 | $478 | $35,993 |
| 20 | $418.33 | $418 | $50,348 |
The formula
- Sales tax
55000 * 6 / 100 - Amount financed
max(0, 55000 + 3300 - 8250 - 0) - Monthly payment
50050 * 0.0066583 / (1 - pow(1 + 0.0066583, -180)) - Total of payments
478.01497 * 180 - Total interest
86042.695 - 50050 - Running cost a year
55000 * 10 / 100 - Running cost a month
5500 / 12 - Payment plus running cost
478.01497 + 458.33333 - First year, all in
8250 + 478.01497 * 12 + 5500
Source: BoatUS — expert advice on the cost of boat ownership, Federal Reserve — consumer credit interest rates
Questions people actually ask
- How much does a boat really cost a month?
- The payment plus roughly a twelfth of 10% of the boat’s value. On a $55,000 boat financed over 15 years that is $478 of loan and $458 of running cost — $936 a month, close to double what the finance quote shows.
- What down payment do marine lenders want?
- Usually 10-20%, and more on a hull over about fifteen years old or on a loan taken without a survey. Larger down payments also buy a lower rate, since the lender’s exposure is what the rate is priced on.
- Why are boat loan terms so long?
- Because the payment on a $50,000 loan over five years is unaffordable to most buyers. The term stretches to fit the budget, which is also why so many owners sell at a loss they have to write a cheque to settle.
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