How much can you afford to spend on a boat? Even if you plan on getting a boat loan to purchase a boat, you’ll still need to consider your budget when deciding how much to spend on a boat.
Our boat loan calculators help you determine the price of a boat you can afford, how much your payments will be, and which boat loan offers the best terms.
Boat Affordability Calculator
The boat affordability calculator takes your desired monthly payment, interest rate, down payment, and loan term and translates that into the price of a boat you can afford.
Step 1: Enter your desired monthly payment in the “Maximum Monthly Payment” field
The cost of boat ownership includes more than just the monthly payments on your boat loan. Depending on the size and type of boat, you may pay substantial amounts for storage, marina fees, launch fees, maintenance, insurance, and repair expenses.
Step 2: Enter your estimated interest rate
You can find boat loans from boat dealers, banks, credit unions, and other finance companies. Check with several providers to see what the going rate is for applicants in your situation.
Step 3: Enter the amount of your down payment
Your financing options may require that you make a down payment to secure the loan.
Step 4: Select a loan term
Pick a loan term between 1, 2, 3, 4, 5, 7, 10, or 15 years that works with your situation.
Decoding Your Results
The calculator displays the maximum boat price you can afford once you enter your budgeted boat payment amount, interest rate, down payment, and length of loan.
It’s good to experiment with different numbers. For example, you’ll notice that the longer your loan term, the more you’ll be able to spend on a boat. Many boat loan providers offer terms of 12 to 15 years for larger loan amounts.
Which Lenders Have the Best Boat Loan Rates?
Secured boat loans are available, but for some boat buyers, a personal loan makes more sense. Use our personal loan search tool and compare rates, terms, and fees from top lenders.
Boat Loan Interest Rates
Your boat loan interest rate depends on your credit report and credit score, as well as the amount borrowed and the loan term.
Boat loans can be secured or unsecured. With a secured loan, the lender can repossess the boat if you don’t make your payments as agreed. With an unsecured loan, the lender cannot repossess the boat. The lender relies entirely on your promise to repay the loan.
- Secured boat loan interest rates range between 4.5% to over 20%.
- Unsecured personal loan rates are comparable with those for secured loans if your credit is excellent.
Applicants with bad credit do better with secured boat loans because these are less risky for lenders.
Boat Loan Payment Calculator
What if you have a boat in mind and just want to know what your monthly payment will be? The boat loan payment calculator can help you estimate your monthly payment.
Simply input the amount you wish to borrow, enter an estimated interest rate, and select a loan term.
The calculator gives you the monthly payment for terms ranging from 1, 3, 5, 7, 10, and 15 years.
The longer your term, the lower your monthly payment will be. However, the longer you finance a purchase, the more you will pay in interest charges.
Compare Boat Loans and Find the Best Deal
Once you have contacted a few boat loan providers, you’ll probably have several offers to compare. These offers may come with different interest rates, loan fees, and terms.
How can you tell which loan has the lowest cost or the most affordable payment?
Use our boat loan comparison calculator by following these instructions:
Step 1: Input your estimated loan amount
You may not know the exact amount, but that’s okay. A ballpark figure is fine for now.
Step 2: Add in estimated lender’s fees
You can get an estimate of this amount from your lender or lender’s website.
Step 3: Input the term for each loan
This is the amount of time you’ll take to pay back the loan.
Step 4: Input the interest rate for each loan
Again, an estimate is fine here.
Step 5: Hit “Calculate”
The calculator returns the monthly payment and total financing cost for each proposed loan, which includes lender fees and interest charges over the life of the loan.
What Is APR?
The annual percentage rate is another way to express the cost of a loan.
The government requires lenders to disclose the APR so consumers can more easily compare loans with varying interest rates, terms, and loan fees.
However, the loan with the lowest APR does not always have the lowest lifetime costs. That’s because borrowing for a longer term, even at a lower interest rate, can cost more over the life of the loan.
How to Pay Less for a Boat Loan
There are many ways to finance personal watercraft or boats. The best one for you depends on your credit rating, resources, desired loan amount, and term. Here are a few pointers:
Shop for the Best Loan Deal
The more expensive your boat, the more carefully you should shop for financing.
Small Differences Mean a Lot
Small differences in interest rates can translate to big savings over time for larger loan amounts. Consider secured boat loans and home equity financing for high-end watercraft.
Pay the Right Price
If your boat dealer offers you low- or no-interest financing, make sure that you’re not paying more for the boat than you would if you financed it independently.
Consider Using Credit
For small, less-expensive boats or personal watercraft, your best bet might be a zero-interest credit card offer with no interest for up to 24 months.
Personal Loans Can Be Used for Almost Anything
Personal loans (also called unsecured loans or signature loans) can make great boat loans, especially if you have excellent credit.
Personal loans can be used for almost any purpose, but some personal loan providers offer special loans for boats.
Consider Secured Loans
Some lenders also offer secured personal loans or boat loans. Secured loans can make it easier and cheaper for boat buyers with lower credit scores to get financed.
Whatever loan you choose, make sure you can afford it. Include the total cost of boat ownership in your budget in addition to your boat loan payments, and shop for the lowest-cost boat loan before committing to buy. You’ll enjoy your boat a lot more if you can comfortably afford it.