Can I deduct boat loan interest?

If the boat qualifies as a second home (has sleeping, cooking, and toilet facilities), loan interest may be deductible under current US tax rules. Check with a tax professional.

Why are boat loan APRs higher than auto loan APRs?

Boats depreciate faster and are harder to repossess and resell. Lenders price that risk into the rate.

Money & Finance · Free tool

Boat Loan Calculator

Calculate monthly payments and total cost of a boat loan. Accounts for longer terms typical of marine financing.

Updated April 2026

Loan amount ($)Annual interest rate (%)Term (years)

Monthly payment

$495.94

Total paid

$59,513.13

Total interest

$19,513.13

What it does

A free boat loan calculator built around the realities of marine financing: longer terms (10-20 years is common), higher APRs than auto loans, and a much steeper depreciation curve. Enter loan amount, APR, and term — get monthly payment and total interest before you sign anything at the marina.

Boats depreciate faster than most people expect. A loan that outlives the boat’s useful life is a real risk, which is why shorter terms are friendlier even though the monthly is higher. Budget for dockage, fuel, insurance, and winter storage before you commit to the payment.

Example input & output

Input

Amount: $40,000
APR: 8.5%
Term: 10 years

Output

Monthly: $495.95
Total paid: $59,514
Total interest: $19,514

Nearly half the loan cost is interest at this term; a 7-year loan saves about $6,300.

How to use it

Enter the amount financed after any down payment.
Enter the APR from your marine lender or bank.
Enter the term in years — 10, 15, or 20.
Read monthly payment and total interest; factor in ownership costs separately.

When to use this tool

Fixed-rate secured boat loans.
Refinance scenarios on existing marine financing.

When not to use it

Dealer-financed promotional terms with variable rates.
Chartered/commercial vessels (different tax and financing rules).

Common use cases

Budgeting a realistic monthly payment before a boat purchase.
Comparing marine-lender APRs with a home equity loan option.
Deciding between new vs used financing terms.

Frequently asked questions

Can I deduct boat loan interest?: If the boat qualifies as a second home (has sleeping, cooking, and toilet facilities), loan interest may be deductible under current US tax rules. Check with a tax professional.
Why are boat loan APRs higher than auto loan APRs?: Boats depreciate faster and are harder to repossess and resell. Lenders price that risk into the rate.