How boat loan interest works
Interest is worked out each month on the balance you still owe, at one twelfth of the annual rate. Early payments are mostly interest; as the balance falls, more of each payment repays the loan.
Lenders may calculate interest differently (some charge it daily), so your actual interest can differ slightly.
Worked example
Borrowing £64,000 for an £80,000 boat at 8.5% over 10 years costs £793.51 a month and £31,221.01 in interest, £5,277.15 of it in the first year.
Paying less interest
A larger deposit or a shorter term reduces the interest. Marine mortgages and loans vary widely, so compare quotes on total cost.
Inputs for the boat loan calculator with interest
Boat price
The price of the boat.
Deposit
What you're paying upfront. A bigger deposit means borrowing less and paying less interest.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over. A longer term means paying interest for longer.
CALCULATOR QUESTIONS
Boat loan interest and repayment calculator questions
How much interest will my boat loan cost?
Enter your figures above. For example, £64,000 at 8.5% over 10 years costs £31,221.01 in interest.
Why do I pay more interest at the start?
Interest is charged on the balance you owe, which is highest at the start. As you repay, the balance falls and so does the interest.
Is a marine mortgage cheaper than a personal loan?
It can be for larger amounts, as it's secured on the boat. Compare total costs.
What's the difference between the interest rate and the APR?
The interest rate is what's charged on the balance. The APR also includes most compulsory fees, so it's better for comparing the overall cost of different loans.