Boat Loan Calculator
Whether you dream of a fishing boat, pontoon, or cruiser for weekend getaways, financing a boat can make those plans more achievable. Boat loans typically offer terms of 5 to 20 years, with longer terms used for higher loan amounts.
Because boats can depreciate unpredictably and financing terms may be longer than other vehicle loans, it's important to consider your down payment carefully. In general, a down payment of 20% or more helps you build equity more quickly and reduces the risk of owing more than the boat's worth.
Use this calculator to estimate your monthly payments on a boat loan, understand how equity works, and explore the potential total cost of financing.
Total Purchase
Cost
Down Payment
+ Trade In
Total Amount
Financed
Your down payment is below the recommended 20%. Consider increasing it to avoid owing more than the vehicle is worth due to depreciation.
The total cost of this loan is $0, which includes $0 in interest.
0% of the total cost is interest.
Loan Balance vs. Boat Value
Depreciation is very hard to predict, especially with used boats. But assuming a new boat purchase, this chart estimates how a loan balance compares to its hypothetical value over time. If the boat value line dips below the loan balance, you may owe more than the boat is worth.
Based on generalized assumptions for a new boat purchase, the estimated value after 15 years is $0.
Understanding Equity and Depreciation
Equity refers to the remaining value of a vehicle if it were sold. Equity can be positive (you take away money from a sale), neutral (the sale pays off the remaining loan balance), or negative (the sale doesn't cover the loan balance and you must pay the difference). Larger down payments and shorter loan terms are the keys to avoiding negative equity.
Boats are often financed at longer terms than other vehicles. This table shows the estimated depreciation of a new boat purchase based on publicly available data.
Year |
Remaining Value |
Depreciation Rate |
|---|---|---|
| 1 | 88% | 12% |
| 2 | 84% | 4.5% |
| 3 | 80% | 4.8% |
| 4 | 77% | 3.8% |
| 5 | 74% | 3.9% |
| 6 | 71% | 4.1% |
| 7 | 69% | 2.8% |
| 8 | 67% | 2.9% |
| 9 | 65% | 3.0% |
| 10 | 63% | 3.1% |
| 11 | 61% | 3.2% |
| 12 | 59% | 3.3% |
| 13 | 57% | 3.4% |
| 14 | 55% | 3.5% |
| 15 | 53% | 3.6% |
| 16 | 51% | 3.8% |
| 17 | 49% | 3.9% |
| 18 | 47% | 4.1% |
| 19 | 45% | 4.3% |
| 20 | 43% | 4.4% |
Note that depreciation rates can vary based on factors such as brand, model, condition, and market demand.