How this number is made
A boat loan is often secured by the boat and written for a longer term than a car, because the purchase is larger and the resale is thinner. The payment is still a standard amortization.
- Amount financed is after the down payment and before a fee you pay in cash.
- The rate is the rate in the note. A promotional rate that expires is not this page.
Formula
Payment = P × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12.
Worked example
With the figures already in the form, monthly payment is $557.94.
Questions
Why is this its own page?
Boat loans are often longer than car loans and secured by the hull. The payment formula is ordinary amortization.
Are fees included?
Only if you added them to the amount financed. A fee paid in cash is a cost, but it does not change this payment.