Boat Loan Calculator
This boat loan calculator will help you determine the monthly payments on your boat loan. Simply enter the loan amount, term and interest rate in the fields below and click calculate. This calculator will show you both the principal and interest payments you would make on a fixed-rate boat loan.
How does our boat loan calculator work?
The Bankrate boat loan calculator helps borrowers calculate monthly payments for fixed-rate boat loans. Boat loans are installment loans, meaning that you make monthly payments on the principal balance plus interest and fees until the loan is paid back. Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan. Our calculator shows you the estimated monthly payment for your boat loan, based on the loan amount, term length and interest rate you enter.
How much does a boat cost?
The cost of buying a boat varies widely depending on the type of boat you buy and whether you buy it new or used. The average cost of a new boat is typically $60,000 to $75,000, but you could end up paying far less or far more than that depending on what you’re looking for. If you’re looking for a personal watercraft, for example, you could pay as little as $9,500 or as much as $70,000 depending on the year, make and model of the boat.
Buying the boat is just the first expense. You also need to consider regular maintenance costs, insurance costs and potentially storage fees if you plan to store your boat at a marina. If you plan to take out a boat loan to finance the purchase, you also need to factor in the interest rate and fees of the loan.
What is the average boat loan term?
Boat loans are unsecured personal installment loans, so the terms for these loans tend to be similar to personal loans overall. The term length of your loan determines how much of the principal balance you will pay per month as well as how long it will take you to pay off the loan. Different lenders have varying options, but most offer at least two to three term options anywhere between 1 year to 7 years. The term lengths you qualify for also depend on how much you’re borrowing. Smaller loans are less likely to be eligible for longer repayment periods.
What is the average boat loan interest rate?
The best personal loan interest rates range from 3 percent to 36 percent, with the average personal loan rate currently at 10.61 percent.
The average personal loan rate steadily increased throughout 2022 due to rising federal rates. It is likely that these rates will continue to rise throughout 2023. However, the actual rate you qualify for depends on the lender, your credit score and financial history, as well as the size of the loan.
Secured vs. unsecured boat loans
Secured boat loans, similar to other secured personal loans, use the boat itself as collateral. This means that if the loan goes unpaid, the lender may be eligible to repossess the boat. One upside to this type of loan is the potential for lower interest rates and longer repayment terms. Borrowers with less-than-ideal credit may also have an easier time of qualifying for a secured boat loan.
Unsecured boat loans do not require the financed boat as collateral, and thus do not risk the craft in the event of non-payment. However, these loans tend to be more difficult to qualify for– and interest rates tend to be higher. Additionally, nonpayment does not necessarily go unpunished: the lender may take the borrower to court if they violate the terms of repayment.
Should you buy or rent a boat?
Buying and renting both have their own advantages and disadvantages. Compare the options to decide which is best for you.
How to finance a boat
Boats can be expensive, so many people can't buy one outright. Here is everything you need to know about your financing options for getting a boat.
How to qualify for a boat loan
If you plan to apply for a loan to finance your boat purchase, know what you'll need to qualify for a boat loan.