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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.

Oct 31, 2023

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 fixed monthly payments on the principal balance – plus interest and fees – until the loan is paid off. Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan and the payments stay the same each month. Our calculator shows you the estimated monthly payment for your boat loan, based on the loan amount, term length and interest rate of the loan.

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 between $40,000 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 in the market for an older model, for example, you could pay as little as $9,500 depending on the make and model of the boat. 

However, the cost of the boat is just the first expense. When calculating the entire cost of the boat, you'll also need to consider regular maintenance costs, insurance and potential 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, with the lengths you qualify for also depending on how much you’re borrowing. However, smaller loans are less likely to be eligible for longer repayment periods, which will result in larger monthly payments.

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 10.96 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 to satisfy the delinquent payments. Despite this risk, borrowers with less-than-ideal credit can consider borrowing a secured loan, as they may have an easier time qualifying than with an unsecured loan. Plus, secured loans often come with the potential for lower interest rates and longer repayment terms, since the lender is incurring less risk by securing the boat as collateral. 

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 could take the borrower to court if they violate the terms of repayment and default on the loan balance.

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