Boat Loan Calculator

Estimate your monthly payments with our boat loan calculator.

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How to use our boat loan calculator

By using our boat loan calculator, you can estimate what your payment may be based on how much you plan to borrow, what your interest rate is, and how long your loan term is. Here’s what you need to know about each category:

Loan amount: This one may go without saying, but your loan amount is the amount of money you are borrowing to buy your boat.
Interest rate: It costs money to borrow money, thanks to interest. Your lender will work this figure into your monthly loan payment.
Note that your loan offer might show your projected annual percentage rate (APR) rather than interest rate. APR is your interest rate plus any additional fees. If this is the case with your offer, key in your APR instead of interest rate when using our boat loan calculator.
Loan term: Your term is the length of time you have to pay off your loan. Terms for secured boat loans generally span from 10 to 20 years. Personal loan terms, on the other hand, usually range from 12 to 84 months (sometimes longer).

For more information about boat loan terms, read How Long Can You Finance a Boat?

How much does a boat cost?

Boat costs vary wildly, depending on the vessel, where you live and whether you’re buying a new or used boat. That’s not to mention additional costs associated with necessary accessories like a trailer and life jackets.

The costs below are ballpark figures and only apply to new boats. While this information could get you started, the best way to figure out a boat’s purchase price is to do some shopping.

Type of vessel	Average cost
Small fishing boat with trailer	$18,000 - $45,000
Canoe	$1,000 - $1,500
Kayak	$200 - $5,000
Cabin cruiser	$30,000 - $900,000+
Sailboat	$100,000 - $500,000
Pontoon boat	$15,000 - $40,000
Yacht	$300,000 - $15,000,000+

How can I lower my estimated boat loan payments?

A boat might make lifelong memories for you and your family, but it can also take a big bite out of your budget. If a loan seems out of reach after using our boat payment calculator, the strategies below might help.

Buy a cheaper boat

A good way to ensure you can manage your payments is to buy a used, inexpensive boat. Although you might be dreaming of a brand-new sailboat, a preowned cabin cruiser might be a better fit.

Choose a longer term

Because your loan will be spread over a longer period of time, opting for a longer boat loan term will reduce your monthly payments. However, a longer loan term will result in more interest over the life of your loan.

Improve your credit

It’s not something you can do overnight, but improving your credit score will help you qualify for lower APRs. You could improve your debt-to-income ratio by paying down some current debt, and in the meantime, check your credit report for errors.

Boat loans vs. personal loans

There are two main ways to finance a boat. One is to take out a boat loan, and the other is to take out a personal loan. While both types of loan have fixed rates, there are a few fundamental differences that set them apart.

Boat loans

A boat loan is secured, which means it uses your boat as collateral. If you fall far behind on your payments, your lender has the right to seize your boat. Additionally, some boat loans require you to make a down payment on your vessel.

Using collateral to secure your loan takes some of the risk from the lender and puts it onto you. As a result, secured loans typically come with lower APRs. Secured loans can also be easier to qualify for, making them an option if you need a bad-credit boat loan.

Also, boat-specific lenders specialize in financing watercraft, so they know how pricey buying a boat can be. That means they tend to offer larger loan amounts than personal loan lenders.

Personal loans

On the flip side, personal loans are usually unsecured. You don’t have to put up collateral, and they never require a down payment. But they can carry high APRs for bad-credit borrowers.

One of the best things about personal loans is their flexibility. You can use a personal loan for nearly anything, including boats. You can also roll other boat-related expenses into your loan, such as safety gear, licenses and registration. This could reduce your upfront costs.

Where can I find a boat loan?

Some boat loans can be easier to find than others — it depends on the type of loan you’re looking for.

Manufacturer financing

If you’re buying a brand-new boat, you might want to look into manufacturer financing. Here, you will buy your boat and finance it, all under the same roof. Manufacturer financing typically comes with ultra-competitive APRs and buyer incentives.

For instance, at the end of the year, Yamaha runs an End of Season Sales Event. Among its promotions, it offers zero down, zero interest and zero payments for 90 days. You could also find introductory APRs as low as 4.99%. Although the deals you find may differ, manufacturer financing could save you a boatload of money, if you qualify.

Banks and credit unions

Some banks and credit unions offer boat loans, and even more offer personal loans. Since you already have a standing relationship, your bank or credit union can be a good place to turn to for a loan.

In-house financing

In-house financing, sometimes called dealer financing, can be a convenient way to get a boat loan. With this option, the boat dealer will set up your financing with a third-party lender. Or it could provide financing itself if it’s a buy here, pay here boat dealer. You may be familiar with in-house financing if you’ve ever gotten an auto loan from your dealership.

In-house financing can have higher interest rates than other types of boat loans. Your dealer has no obligation to shop around or offer you the cheapest loan you qualify for. For this reason, it may be wise to compare lenders before committing to dealer financing.

Online lenders

Online lenders are a common place to get a personal loan. You don’t need to leave the comfort of your home, and funding timelines are generally quick. Compared to bank and manufacturer loans, however, they tend to include higher origination fees.

If you’re interested in online lending, LightStream might be worth exploring. Its boat loans (technically personal loans) have a competitive APR range of 7.49% to 16.14% (with autopay). You’ll need good to excellent credit to qualify, though.