Boat Loan Payment Calculator

Monthly payment = P * (r * (1+r)^n) / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments. This is the standard fixed-rate loan amortisation formula used by all lenders.

Boat loan rates in the US typically range from 6% to 14% APR depending on creditworthiness, loan term, and whether the boat is new or used. Rates from marine lenders (banks, credit unions, NMMA-affiliated lenders) for well-qualified borrowers buying new boats are often in the 6% to 9% range. Used boat loans typically carry higher rates.

Boat loan terms commonly range from 5 to 20 years. Shorter terms (5 to 10 years) have higher monthly payments but significantly lower total interest. Longer terms (15 to 20 years) are available for higher loan amounts (typically over $25,000 to $50,000). Some lenders offer up to 20-year terms for larger vessels.

If your boat qualifies as a second home (has sleeping, cooking, and toilet facilities), the interest on a loan secured by the boat may be deductible as qualified home interest under IRS Publication 936. Consult a tax professional to confirm your specific situation qualifies under current IRS rules.

The interest rate is the cost of borrowing expressed as a percentage, used to calculate your payment. APR (annual percentage rate) includes the interest rate plus other loan costs such as origination fees, expressed as a yearly rate. APR gives a more complete picture of the total cost of the loan. This calculator uses the stated interest rate for payment calculations.