Boat Loan Calculator

Updated on April 26, 2024
Article byHarsh Katara
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Boat Loan Calculator

A Boat Loan is similar to a vehicle loan wherein the purchaser can make a down payment and pay the rest of the amount through a loan, and this calculator will exactly let you know the amount of installment to be paid by the purchaser. They last anywhere from a few years to even a decade, depending on the tenure the borrower chooses.

Boat Loan Calculator

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One of the primary benefits of free boat loan calculators is their accessibility to a wide range of borrowers, including both individuals and businesses. Whether purchasing a recreational boat for leisure activities or a commercial vessel for business purposes, borrowers can secure financing to fit their specific needs and financial circumstances.

Boat Loan Calculator

(L * r *(1+r)n*F )/ ((1+r)n*F-1)

  • L is the Amount borrowed.
  • r is the interest rate per annum.
  • n is the number of periods for a loan will be outstanding.
  • F is the frequency wherein the loan amount is to be repaid.
the Amount borrowed.
interest rate per annum.
periods for a loan will be outstanding.
frequency wherein the loan amount is to be repaid.

Boat Loan Calculator Explained

Boat loans provide individuals with a financing option to purchase watercraft such as boats, yachts, or personal watercraft. These loans function similarly to other types of secured loans, where the boat itself serves as collateral for the loan. Boat loans are commonly offered by banks, credit unions, and marine financing companies, providing borrowers with flexibility in terms of loan terms, interest rates, and repayment options.

Boat loans typically come with fixed or variable interest rates, depending on the lender and the borrower’s creditworthiness. Fixed-rate loans offer stability and predictability in monthly payments, while variable-rate loans may fluctuate based on market conditions. Borrowers can choose the option that best aligns with their preferences and risk tolerance.

Moreover, these loans may offer flexible repayment terms, allowing borrowers to spread out payments over several years to make financing more manageable. Loan terms typically range from a few years to over a decade, with longer terms resulting in lower monthly payments but potentially higher overall interest costs.

However, it’s essential for borrowers to carefully consider the total cost of financing, including interest charges and any associated fees. Additionally, maintaining insurance coverage on the boat is often a requirement of the loan agreement to protect both the borrower and the lender in the event of damage or loss.

Therefore, boat loans provide a convenient and accessible means for individuals and businesses to finance the purchase of watercraft. With flexible boat loan calculator payment, competitive interest rates, and tailored repayment options, boat loans let borrowers to experience and exploit their adventures in the waters while effectively managing their finances.


Let us understand the formula that shall act as the basis of our understanding of a boat loan calculator payment through the discussion below.

(L * r * (1+r)n*F )/ ((1+r)n*F-1)


  • L is the Amount borrowed
  • r is the interest rate per annum
  • n is the number of periods for which a loan will be outstanding
  • F is the frequency wherein the loan amount is to be repaid

One of the major investments one can make is a boat. For example, in the United States, a 22-foot sailboat can cost around $25,000; further, the cost can also vary across a choice of boat. Further, one needs to fully understand how the boat’s cost works along with the cost of keeping it. Other costs are associated with a boat, like the initial taxes applicable on the same, mooring fees, fuel costs, winter storage fees (if applicable), etc. Insurance could also be an added cost. Hence, one should do deep research on the same before buying the boat, and most of them can also be financed by the bank. One can make an initial down payment as per their capability and get the rest of the price financed by the bank. Again, banks provide finance based on the credit rating applicable to them, so one needs to maintain their credit score.

How to Calculate?

One needs to follow the steps below to calculate the boat loan calculator payment in installment amounts.

Step #1 – Firstly, determine the boat that one wants to purchase and the price of the same along with the percentage of the loan that the bank will finance, and the same would be the loan amount.

Step #2 – One must multiply the loan amount by the applicable interest rate.

Step #3 – Compound the periodical interest rate by the interest payout frequency.

Step #4 – Discount the value arrived in step 3 by following (per given in the formula).

Step #5 – After entering the above formula, one will get the installment amount that shall be repaid for the Boat Loan borrowed.

You can download this Boat Loan Calculator Excel Template here – Boat Loan Calculator Excel Template

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Let us understand the set of requirements that borrowers need to fulfill and the finance cost to consider before they can check their monthly payments on a free boat loan calculator.

  • Creditworthiness: Lenders typically evaluate the borrower’s credit history, credit score, and debt-to-income ratio to assess their ability to repay the loan. A strong credit profile may result in more favorable loan terms, including lower interest rates and higher loan amounts.
  • Down Payment: Many lenders require a down payment for boat loans, typically ranging from 10% to 20% of the purchase price. A larger down payment may result obviously in better loan terms and lower monthly payments.
  • Collateral: The boat being purchased acts as collateral for the loan, providing security for the lender in case of default. The value and condition of the boat may influence the loan amount and interest rate offered by the lender.
  • Insurance: Lenders often require borrowers to obtain insurance coverage for the boat to protect their investment. Boat insurance typically covers damage, theft, liability, and other risks associated with such ownership.
  • Documentation: Borrowers are typically required to provide documentation such as proof of income, identification, and the purchase agreement for the boat. Completing the necessary paperwork accurately and promptly can expedite the loan approval process.


Now that we understand the basics, requirements, and formula for boat loan calculator payments, let us understand its practical application through the examples below.

Example #1

Mr. Tim, a Delaware resident, wants to buy a motorboat costing around $35,000. On inquiry with the dealer, Mr. Tim knew he would also be liable to pay taxes and insurance. The cost of insurance will be 5% of the cost, and the taxes applicable will be 7% of the cost price. Since he doesn’t have that many funds, he decides to borrow a loan from the bank. The bank is financing 90% of the total cost of the boat, and the rest will be paid by him upfront to the dealer. He chose an installment for 36 months as an equal installment. The Interest rate the bank charges is 10%, and there are 2% upfront processing charges on the sanctioned amount.

Based on the above information, you must calculate the monthly installment amount of the boat loan and the total interest outflow.


We need to calculate the cost price of the boat.

Boat Loan Calculator Example 1

We need the loan amount, which will be 39,200 *90%, which is 35,280.00. There is 2% of the Processing fees of the sanctioned loan amount, which will be paid upfront, which is $705.60. Lastly, the down payment by Mr. Tim will be 39,200 – 35,280.00, which is $3,920.00, which is 10% of the cost price.

The loan period repayment is 24 equal installments, and further, the interest rate is 10.00% fixed, which shall be compounded monthly, which is 10.00%/12, which is 0.83%.

Boat Loan Calculator Example 1-1

Now we shall use the below formula to calculate the EMI amount.

EMI = (L * r *(1+r)n*F )/ ((1+r)n*F-1)
Boat Loan Calculator Example 1-2
  • = ($35,280.00 * 0.83% * (1 + 0.83%)^36 ) / ( (1 + 0.83%)^36 – 1 )
  • = $1,138.39

Therefore, the installment amount for Mr. Tim for the next three years on the loan amount of $35,280 shall be $1,138.39, and when multiplied same with 36, the total amount repaid $40,981.91, less $35,280.00, which equals $5,701.91 and total cash outflow due to a loan will be $5,701.91 + $705.60 which is $6,407.51.

Example 1-3 (total interest)

Example #2

Mrs. Pooja is seeking to purchase a new boat and is looking for the same to be financed by a bank. The total cost of the vehicle is $40,8000, which includes all. The Bank will grant a loan of 80%, and she will repay the rest upfront. However, she is unsure what tenure she would choose as her goal is to keep her monthly cash outflow lower than $1,300, and she is not ready to pay any cumulative interest amount throughout the loan period of more than $8,000. The interest rate that the bank shall charge her will be 11.00%. The Bank can grant her a repayment period of either 36 months or 48 months.

Based on the given information, you must advise Mrs. Pooja as to what she should do?


We need to calculate the installment amount that will be paid monthly; for that, first, we need to know the amount of the loan, which is $40,800 * 80%, which is $32,640.00. The interest rate given is 11.00% fixed, and it is compounded monthly, which will be 11%/12, which is 0.92%.

Example 2 (Given data)

Use the formula below to calculate the installment amount for 36 months.

EMI = (L * r * (1+r)n*F) / ((1+r)n*F – 1) 
Boat Loan Calculator Example 2-1
  • = ($32,640 * 0.92% * (1 + 0.92%)^36) / ( (1 + 0.92%)^36 – 1 )
  • = $1,068.59

Total interest outflow will be equal to ($1,068.59 * 36) – $32,640 which is $5,829.30.

Example 2-2 (total interest)

Again, using the same formula, we will calculate the installment amount for 4 years, which is 48 months.

EMI = (L * r * (1+r)n*F) / ((1+r)n*F– 1)
Boat Loan Calculator Example 2-3
  • = ($32,640 * 0.92% *(1 + 0.92%)^48) / ( (1 + 0.92%)^48 – 1)
  • = $843.60

Total interest outgo equals to ($843.60 * 48) – $32,640 which is $7,852.70

Example 2-4 (total interest)

Advice: Since her preference is not to pay cumulative interest of more than $8,000 in the entire loan duration and for that, both are meeting her requirements and her second requirement is that the installment amount should be lower and not more than $1,500, which only second option is preferable, and she should opt for 48 months.

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This has been a guide to the boat loan calculator. Here we discuss how to calculate the amount of installment to be paid by the purchaser using a boat loan calculator along with examples. You may also take a look at the following useful articles –