Boat Loan Calculator

May 13, 2024

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 boat’s price is just the first expense. When calculating the entire cost of financing a boat, you'll also need to consider:

• Regular maintenance costs.
• Insurance.
• 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 boat loan interest rate and fees.

How different factors affect your estimated boat loan payments 

Just like with any other loan, there are a number of factors that go into your total monthly payment. Other than the lender and its fee structure, here are a few considerations to make when calculating your potential payments. 

• Loan amount: Larger loan amounts will result in larger payments. However, if you prefer a longer term, the monthly responsibility will be lessened, but you'll end up paying more in interest charges over time. 
• Loan term: Secured boat loans — ones backed by collateral — can reach up to 15 years, while unsecured options typically range between two to five years. The longer your loan term, the smaller your monthly payments will be. 
• Credit score: Individuals with good-to-excellent credit  are more likely to score the best rates and terms.Those with lower credit will have a harder time getting approved and are more likely to pay more in interest each month. 

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 can 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. However, these loans tend to be more difficult to qualify for and interest rates tend to be higher. And nonpayment still has consequences. The lender could take the borrower to court if they violate the terms of repayment and default on the loan balance.