Boat Loan Calculator

Total Purchase Price of Boat:

Interest Rate (%):

Down Payment (Figure):

Down Payment (%):

Loan Term (Months):

Loan Term (Years):

Welcome to the Boat Loan Calculator. This tool will empower you to easily calculate the monthly installment of your boat loan based on various factors such as the total purchase price of the boat, the interest rate on the boat loan, the loan term in years or months, and finally, the down payment either as a figure or a percentage. After entering all the necessary data into the Boat Loan Calculator, click the Calculate button, and the tool will show you how much you will have to pay.

How to Calculate Monthly Installment for a Boat Loan

To calculate the monthly installment for a boat loan based on the factors mentioned, follow these steps:

Factors Required

Total Purchase Price (P): The full cost of the boat.
Down Payment (D): Either a fixed amount or a percentage of the total purchase price.
Loan Amount (L): Calculated as the total purchase price minus the down payment.
Annual Interest Rate (r): The annual interest rate for the loan.
Loan Term (T): The duration of the loan, which can be in months or years.

Formula

M = L × (r / 12) / [1 - (1 + r / 12)^-n]

Where:

M: Monthly payment
L: Loan amount (Total Purchase Price - Down Payment)
r: Annual interest rate (in decimal form, so 5% becomes 0.05)
n: Total number of payments (Loan Term in months)

Step-by-Step Calculation

Convert the Down Payment: If the down payment is a percentage, convert it to a fixed amount: D = Total Purchase Price × (Down Payment Percentage / 100). Subtract the down payment from the total purchase price to get the loan amount: L = Total Purchase Price - D.
Convert the Annual Interest Rate to Monthly: Divide the annual interest rate by 12 to get the monthly interest rate: Monthly Interest Rate = Annual Interest Rate / 12.
Determine the Number of Payments: Convert the loan term to months if it is given in years: n = Loan Term in Years × 12 or use the term in months directly.
Plug Values into the Formula: Calculate the monthly payment using the formula provided.

Example Calculation

Given:

Total Purchase Price: $50,000
Down Payment: $10,000
Annual Interest Rate: 5% (0.05 in decimal)
Loan Term: 5 years

Steps:

Loan Amount (L): L = $50,000 - $10,000 = $40,000
Monthly Interest Rate: Monthly Interest Rate = 0.05 / 12 = 0.004167
Number of Payments (n): n = 5 years × 12 = 60 months

Calculate Monthly Payment (M):

M = 40000 × 0.004167 / [1 - (1 + 0.004167)^-60]
M ≈ 166.68 / [1 - 0.7794]
M ≈ 166.68 / 0.2206
M ≈ 756.89

The monthly installment would be approximately $756.89.