Boat Loan Calculator

A lender gives you the money to buy the boat, and you repay it in fixed monthly payments over a set term. Most boat loans are secured, which means the lender can repossess the boat if you stop paying. You apply through a bank, credit union, marine lender or dealer. The lender usually reviews your credit, the purchase agreement and sometimes a survey of the boat.

Rates change with the market and vary by lender, credit score, loan size, term and the boat's age. We don't publish live rates, since they'd go stale quickly. Get quotes from a credit union, a bank and a marine lender on the same day, then compare APRs. Use the table above to see what each rate would mean for your payment.

A good rate is one at or below what lenders are offering borrowers with your credit for a similar boat and term. New boats and shorter terms usually get better rates than older boats and very long terms. Boat loans often cost more than mortgages or new-car loans, since a boat is a discretionary purchase. Even a one-point drop can save thousands.

Smaller boats are often financed for around 5 to 10 years, while larger and more expensive ones can stretch to 15 or 20. Lenders usually set the longest term by loan size and boat age. The longest term isn't always the best choice. Pick the shortest term with a payment you can comfortably make, and check whether you can make extra payments without a penalty.

Start with your full monthly budget for the boat, then subtract insurance, storage, fuel and maintenance. What's left is your maximum payment. Try different amounts and terms above until the payment fits. Some owners budget around 10% of the boat's value a year for running costs, though it varies widely by boat. Lenders also check your debt-to-income ratio.

Many lenders look for a score in the upper 600s or higher for their better rates, though requirements vary. Applicants with lower scores or recent problems may still find financing through specialist lenders, usually at a higher rate, and may need a larger down payment. Check your credit reports for errors before applying, as a small improvement could lower your rate.

Many lenders expect 10% to 20%, and some may ask for more on older boats or larger loans. A bigger down payment lowers your monthly payment and total interest, and reduces the chance of owing more than the boat is worth. On a $60,000 boat, 20% down reduces the loan to $48,000, which at 8% over 10 years saves about $5,471 of interest.

Yes, though lenders may limit the term or charge a higher rate as the boat gets older, and some won't finance boats beyond a certain age. Expect to provide a marine survey showing the boat's value and condition, which also protects you from buying a problem. If a lender won't take it, a personal loan is an option, usually at a higher rate.

It can be, in some cases. A boat with a sleeping berth, a galley and a head may qualify as a second home for the US mortgage interest deduction, if the loan is secured by the boat and you itemize deductions. Rules and limits apply, and not every boat or owner qualifies. Check IRS Publication 936 and ask a tax professional.

It depends on how much you'll use it and whether the total cost fits your budget. Financing lets you keep your savings invested or on hand, but you'll pay interest on something that loses value. If the loan would crowd out retirement savings or an emergency fund, consider buying a cheaper boat or waiting. Use our investment calculator to compare what that cash could earn instead.