Quick answer: A 150,000 boat plus 5% VAT with 30,000 down leaves 127,500 to finance; at 7% over 10 years the payment is 1,480.38 a month and the total interest is 50,145.97.
How it's calculated
Amount financed = price × (1 + tax rate) − down payment. UAE VAT is 5% and Saudi VAT 15%; if your quote already includes tax, set the tax to 0.
The monthly payment uses the standard amortization formula M = P·r ÷ (1 − (1 + r)^−n), where r is the annual rate ÷ 12 and n the number of months. Boat loans often run 10 to 20 years, so the term has a large effect on total interest.
Islamic marine finance (Murabaha or Ijara) quotes a profit rate; at a fixed rate the payment is worked out the same way. If a lender quotes a flat rate, convert it with the loan and Murabaha calculator first.
Worked examples
- 150,000 + 5% VAT, 30,000 down, 7%, 10 years: P = 127,500 → M = 1,480.38
- Same boat over 15 years: M = 1,146.01, total interest 78,781.09
Frequently asked questions
How much down payment does a boat loan need?
Lenders commonly ask for 10% to 20% of the price, more for older or used boats. Check your lender's terms.
Does the payment include insurance?
No. Marine insurance, marina or mooring fees, registration and servicing are extra running costs.
Is a longer term better?
It lowers the monthly payment but raises the total interest: here 15 years instead of 10 costs 28,635 more in interest.
What running costs should I budget for?
Mooring or marina fees, insurance, maintenance, fuel and registration. Many owners set aside about 10% of the boat's price each year, though this varies a lot.
Can I use this for a jet ski or a used boat?
Yes. The arithmetic is the same for anything financed. Lenders may charge a different rate or a shorter term for used boats.
What if my quote already includes VAT?
Set the VAT field to 0, so the tax isn't counted twice.