Boat Loan Calculator

Boat loans are typically fixed-rate installment loans similar to auto loans, where you make equal monthly payments over a set term. Each payment consists of both principal (the amount borrowed) and interest (the cost of borrowing).

Unlike home loans, boat loans are secured by the vessel itself, which means the boat serves as collateral. This typically results in lower interest rates compared to unsecured personal loans, but higher rates than home mortgages.

Most marine lenders offer terms from 5 to 25 years, with longer terms resulting in lower monthly payments but higher total interest costs. The loan-to-value ratio (LTV) is usually capped at 80-90%, requiring a down payment of 10-20%.

Boat loan interest rates depend on several key factors:

• Credit Score: Higher scores (720+) typically qualify for the best rates (4-7% APR)
• Boat Age & Type: New boats and popular brands often get better rates than older or specialty vessels
• Loan Term: Shorter terms (5-10 years) usually have lower rates than longer terms (15-25 years)
• Down Payment: Larger down payments (20%+) can secure better rates and terms
• Lender Type: Marine-specific lenders often offer better rates than general banks

Typical APR Ranges: 4.5% - 12% for new boats, 5.5% - 15% for used boats, with rates varying based on creditworthiness and loan terms.