Boat Loan Calculator

Boat loans are secured installment loans where the boat serves as collateral. Lenders typically finance 80-90% of the boat's value, requiring a down payment of 10-20%. Loan terms can range from 10 to 20 years depending on the boat's value and age. Monthly payments include principal and interest, and you'll own the boat outright once the loan is paid off.

Most boat lenders require a down payment of 10-20% of the purchase price. New boats often require a minimum of 10-15%, while used boats may require 15-20% or more. A larger down payment can help you secure a lower interest rate, reduce your monthly payments, and potentially avoid private mortgage insurance requirements.

Boat loan interest rates typically range from 5% to 12%, depending on your credit score, loan amount, loan term, and the boat's age and condition. New boats generally qualify for lower rates than used boats. Those with excellent credit (750+) can expect rates on the lower end, while those with fair credit may see higher rates.

Boat loan terms typically range from 10 to 20 years (120 to 240 months). The loan term often depends on the loan amount: loans under $25,000 may be limited to 10-12 years, while loans over $100,000 can extend to 20 years. Longer terms mean lower monthly payments but significantly more interest paid over time.

Yes, most boat dealers and lenders accept trade-ins as part of your down payment. The trade-in value is subtracted from the purchase price before calculating the loan amount. This can reduce the amount you need to finance and may help you meet minimum down payment requirements. Get multiple valuations to ensure you receive fair market value for your trade-in.

Beyond the loan payment, budget for insurance (typically $500-$2,000+ annually), registration and documentation fees, slip or storage fees ($1,000-$10,000+ annually), maintenance and repairs (10% of boat value annually), fuel, winterization or hurricane prep, and equipment. These ongoing costs can equal or exceed your monthly loan payment.

Boat loan interest may be tax deductible if the boat qualifies as a second home. To qualify, the boat must have sleeping quarters, a permanent galley (kitchen), and a head (bathroom). The loan must be secured by the boat, and you must itemize deductions. Consult a tax professional to determine if your boat qualifies.

Most lenders require a minimum credit score of 650-700 for boat loan approval, though some may work with scores as low as 600. Scores above 750 typically qualify for the best rates. If your score is lower, you may still qualify but expect higher interest rates, larger down payment requirements, or the need for a co-signer.

Compare both options. Banks and credit unions often offer competitive rates and flexible terms, especially if you have an existing relationship with them. Dealer financing can be convenient and may offer promotional rates, but dealer rates are sometimes higher. Get pre-approved from multiple lenders to negotiate the best deal.

Yes, boat loan refinancing is available if interest rates have dropped or your credit has improved. Refinancing can lower your monthly payment or shorten your loan term. However, consider any refinancing fees and ensure the interest savings exceed the costs. Most lenders require the boat to be less than 20 years old for refinancing.

Failing to make boat loan payments can result in late fees, damage to your credit score, and ultimately repossession of the boat. If you're struggling with payments, contact your lender immediately to discuss options like loan modification, temporary payment reduction, or refinancing. Selling the boat voluntarily is better than repossession.

Shorter terms (10-12 years) mean higher monthly payments but significantly less interest paid overall and faster equity building. Longer terms (15-20 years) offer lower monthly payments but cost much more in total interest. Consider your budget, how long you plan to keep the boat, and the boat's expected useful life when choosing a term.