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How Much Does it (Really) Cost to Own a Yacht?

The true cost to own a yacht is an area of concern for many prospects of yacht ownership. And it should be.

Maintenance costs, exploitation costs, total cost compared to yacht charter, we detail in this article the expenses (especially the hidden ones) you have to consider before buying your first yacht !

We also provide you several solutions to lighten your investment and reduce the cost to own your yacht. 

If you are looking for the price of a yacht charter (rental), please read this article instead .

How much is a yacht?

Before diving into the expenses that comes monthly, yearly or every decades once you own a yacht, let’s answer the elephant in the room: How much is a yacht (alone) in the first place? The short answer is… it depends, of course. But in most cases, the longer the yacht, the higher is her selling price.

Generally speaking, you can expect to find yachts for sale in the following price ranges:

• Below 50ft (15m): between 500K – 2,500,000 € / USD
• Between 50-70ft (15-21m): between 2 millions and 6 millions € / USD ( See our 9 catamarans for sale under 6 millions here )
• Between 70-100ft (20-30m): between 6 millions and 20 millions € / USD
• Superyachts over 100ft (30m): minimum 10 millions € / USD

You can always find exceptions to the rule and find cheaper or more expensive yachts for sale outside of these price brackets.

A lot of factors come into the selling price of a yacht: supply and demand, brand / model reputation, age and condition of the vessel, urgency or lack of for the sale and so on.

What are the main hidden costs that come with yacht ownership?

You probably already guessed it, the cost of owning a yacht doesn’t stop at its purchase price . In some cases, the price you bought your yacht at can seem like a bargain, but it really isn’t once you start adding all the hidden costs, and many of them come yearly.

Here are the main ones you should be wary of.

Yacht exploitation and running costs : always calculate them carefully before buying your yacht

It always cost you money to exploit your yacht.

When you are chartering a yacht, a part of these operation costs is included in your APA (Advanced Provisionning Allowance) .

When you own a yacht, these costs still apply , but you will have to pay directly for them.

Among the main operation costs, the most important are usually the following:

• The fuel: its cost will depend on the type of boat, her fuel consumption, the region, and the distances traveled;
• The mooring fees which depends on the area but also on the boat size;
• The crew, if you need it. The cost will depend on the frequency and the crew’s size;
• The communication fees;
• The food and beverages supplies;
• All the expenses related to your leisure activities.

Yachts maintenance: a cost that you should definitely not overlook

Even outside of its operating period, it still costs you money to own your yacht!

Maintenance of your boat isn’t an option and must be done on an ongoing basis. The price vary depending on the type of yacht you are owning (motor, sail, etc…), the size of the vessel, but also how old she is.

The maintenance costs include :

• The regular maintenance of certain equipment, like engines, thrusters, sails, rigging, safety equipment, hull(s) (fairing)…;
• The occasional maintenance operations in case of breakdown or damage;
• The painting;
• The cleaning and the specialized maintenance products (for teak, leather, …). 

The costs of maintenance and upkeep will obviously not be the same if you do it yourself or if you call in specialists. But regardless, you should have a budget buffer dedicated to maintenance costs when you plan on buying a yacht, especially if she already had a long sailing life.

The taxes and insurance premiums of a yacht: a cost that most forget

Consider the different taxes (at the purchase and annual) and the yearly yacht insurance that you have to pay. A specialized insurance policy is generally estimated at between 0.8% and 1.2% of the boat’s purchase price per year.

Must Read : Yacht Insurance : The Definitive Owner’s Guide

Yearly harbor fees : a very important hidden cost of yacht ownership

The port and/or winterization fees are also a big part of yacht ownership costs that you should carefuly estimate.

Depending on your region, you may need to consider “dry-docking” your boat, which involves handling, transport, and storage which can be really expensive. 

If you can leave your yacht in the water all year round, you will need to go for a harbor ring concession.

Depending on the marina and its infrastructure, the region, and your boat’s size, the costs may considerably vary from a few hundred dollars to thousands of dollars a month . However, it is easy to obtain this information from marinas once you have chosen which yacht to purchase.

The depreciation’s price of a yacht

A yacht, like a car, will depreciate . It is difficult to estimate the depreciation, as it depends on economic conditions, exchange rates, price inflation when new, the type of boat, and the shipyard. 

However, it is reasonable to estimate a minimum depreciation of 10% in the first year, then 7% in the following years. From the fifth year on, the depreciation tends to slow down. On the other hand, the operating costs increase.

Summary of the main operating and maintenance costs of owning a yacht

So, to sum up, how much does it cost to own a yacht? It largely depends on your type of yacht and your location.

But in general, owning a yacht will cost you between 10-25% of its value annualy . The longer the yacht, the likelier you are to be at the end of the spectrum.

Here are the reasonable costs you could consider:

• 10% of its value annually for a 60ft (18m) / 1 million USD yacht and below (=max 100K / year)
• 20% of its value annually for a 100ft (30m) / 10 millions USD yacht and above (=min 2 millions / year)

These brackets of total costs include everything: usual yacht maintenance, upkeep and operating costs that will be distribued as follow:

• Communication
• Maintenance
• Insurance premiums
• Harbour fees
• Cost of depreciation

Are you worried? Do not. Luckily, there are numerous ways to decrease the overall cost of yacht ownership and still enjoy yachting as it should be. Read the next paragraphs to know these valuable tricks.

If you liked this article you will also like : HOW MUCH DOES IT COST TO CHARTER A YACHT?

How to reduce the cost of yacht ownership?

A yacht keeps on costing money even when not in use, so the best way to make it a more profitable investment is to increase its exploitation.

Renting your own yacht : a good way to reduce the costs of owning a boat

When you are not using the boat, you can earn income by renting it out. The rental price depends on the type and size of the boat, but also its location. While making money from renting is possible, don’t expect to pay back all your expenses. Nevertheless, it will help you in avoiding your yacht becoming a financial burden. 

The easiest way to do this is to hire a professional charter company to help you. If you go for a reputable and experienced company, you will benefit from their expertise and contacts. It will also save you from legal, insurance, and withdrawal issues and avoid red tape.

On the topic : Yacht to Charter : Can It Be Profitable?

Fractional yacht ownership: share the cost of owning a yacht with co-owners

Another solution to own a yacht at lower cost is fractional ownership of a boat , which means that you own a fraction of it. It can be half, a quarter, or even less. For a long time, boaters have been opting for this option of partial ownership with friends or family. These days some companies create formalized fractional ownership arrangements for more guarantees. 

For example, in partnership with the Windward Islands, SAILING RESORT proposes fractional boat ownership on the fabulous trimaran, the LEEN 72’. So you can become a co-owner of the new hybrid-powered multihull which can accommodate up to 10 passengers and 4 crew members. You will enjoy private use of the trimaran (depending on the period) from 6 to 12 weeks during the first 5 years.

This program proposes a profitable commercial operation with 24/7 premium service. It is a tailor-made solution for all those who want to feel like owners of a prestigious yacht for a few days a year while limiting their investment and responsibilities. WI manages the operation of the yacht for you out of your personal use, like the charter’s organization, maintenance, insurance, annual mooring, and all other administrative tasks.

Once you have weighed the pros and cons and have the means to finance both the purchase and the annual costs (maintenance, operation, …) of your yacht, you should go for it! Indeed, if you can evaluate the hidden costs and expenses of owning a boat, the freedom and unforgettable memories are priceless. 

Yacht Charter remains a cheaper alternative than yacht ownership in many cases

If you can’t enjoy your yacht frequently or are still unsure about whether it’s worth the cost or not to own a yacht, you might consider chartering instead. This will allow you to try out different models , from various shipyards, and see which ones you prefer.

Therefore, the cost of renting a yacht will save you from having to worry about all those hidden costs of owning one. All you have to do is pay for your charter, your cancellation insurance and set your APA during your stay. This way, you only pay money, time, and effort when you use the boat.

What is the (true) cost of chartering the yacht you've seen? 💰⛵

The advertised prices of all charter companies do not include APA, VAT & other variable costs. 

Use our calculator to get a 100% FREE estimate of the REAL total cost of your next yacht charter! ⬇

Read also : SUSTAINABLE YACHTING: HOW IS THE BOAT INDUSTRY BECOMING MORE ECO-FRIENDLY?

Frequently asked question

For a 60-foot or million-dollar yacht, the cost per year will be about 10% of its value or $100,000 per year.

You should expect to pay about 20% or more of the original price of your boat to run it annually. So, for a $10 million yacht, the cost to operate will be about $2 million per year, including fuel, insurance, dock fees, maintenance and repairs, crew, etc.

A 180-foot superyacht and/or mega yacht costs a minimum of $4.75 million per year to operate and maintain. Kitty McGowan of the US Superyacht Association estimates an annual budget of $1 million for maintenance and repairs, $350,000 for dockage, $240,000 for insurance, $400,000 for fuel, and $1.4 million for the crew. Add another 15-25% of the vessel’s value for V.A.T.

Once you have weighed the pro and cons, if you can afford the purchase and all the hidden annual expenses, have found your dreamed yacht, and have time to enjoy it, you should go for yacht ownership!

It is not the best way to make money, but you can minimize your annual expenses by renting it or opting for fractional boat ownership.

It’s hard to tell. As long as you have the money and enough time to enjoy it, it is worth owning a yacht! Everything cannot be estimated. For example, it will bring you invaluable freedom and happiness.

One of the easiest way to reduce the maintenance cost of a yacht is to fractional yacht ownership. That way, the maintenance expenses are spread among co-owners according to their shares.

It varies greatly depending on the size of the yacht. For a yacht of 60ft (18m), you will likely spend around 10% of its purchase value each year in maintenance and exploitation costs.

Luxury yachts have maintenance and operation costs that are around 10% of their value yearly. So if a yacht value is 2 millions USD, its maintenance and operations costs should be around 200K / year.

Operating a sailboat is usually 20-40% cheaper than the same size motoryacht. Motoryachts tend to be more expensive to operate than sailboats as the fuel consumption can become an important expenditure fast.

A small yacht below 50ft is usually for sale between 500K and 2,5 millions USD / €. A mid-size yacht between 50ft and 100ft is usually for sale between 2-15 millions USD / €. Above 100ft, the selling price is rarely below 10 millions USD / €.

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Yacht Operating Cost Calculator

How much does it cost to operate a yacht? The cost of operating a yacht can vary significantly depending on factors such as size, type, location, maintenance, crew salaries, fuel consumption, and insurance. It could range from tens of thousands to millions of dollars per year.

What is the annual cost of owning a yacht? The annual cost of owning a yacht includes expenses like maintenance, insurance, dockage, crew salaries, fuel, and other operating costs. For larger yachts, the annual costs can easily reach hundreds of thousands or even millions of dollars.

How much does it cost to run and maintain a yacht? The cost of running and maintaining a yacht depends on various factors, including the size of the yacht, its age, the type of maintenance required, and the level of usage. Regular maintenance and repairs can be a significant ongoing expense.

How much does it cost to run a private yacht? The cost to run a private yacht can vary widely based on factors like size, fuel consumption, crew salaries, maintenance, and other operational expenses. It could range from tens of thousands to hundreds of thousands of dollars per year.

Can a yacht pay for itself? In some cases, yacht owners may charter their yachts to guests to offset some of the operating costs. This can help a yacht generate income, but it’s unlikely to fully cover all expenses and make a profit.

Is it profitable to own a yacht? Owning a yacht is generally not considered a profitable investment. While chartering the yacht to guests can generate some income, the overall expenses of owning and maintaining a yacht often outweigh the potential income.

Are yachts a good investment? Yachts are generally not considered good financial investments. They are luxury assets that come with high costs and depreciate over time. Yacht ownership is more about lifestyle and enjoyment rather than financial return.

How often do owners use their yachts? The frequency of yacht usage varies among owners. Some may use their yachts frequently, while others might only use them occasionally, like during vacations or special events.

What is the average yacht salary? The average salary of yacht crew members can vary based on their positions and experience. Captains, engineers, and senior crew members generally earn higher salaries compared to entry-level positions.

What is the average net worth of yacht owners? The net worth of yacht owners can vary significantly, but it is typically in the high millions or even billions for those who can afford to own large yachts.

How many miles does a yacht last? With proper maintenance, yachts can last for several decades. The lifespan of a yacht depends on the construction quality, materials used, and how well it is taken care of.

How many crew for a 100-foot yacht? A 100-foot yacht typically requires a crew of 3 to 5 members, including a captain, engineer, deckhands, and stewards/stewardesses, depending on the yacht’s operations and owner’s preferences.

Why are yachts limited to 12 guests? Yachts are often limited to 12 guests for safety reasons and to comply with maritime regulations. The number of guests is usually determined by the yacht’s size and safety equipment onboard.

Do private yacht owners tip their crew? Tipping practices can vary, but it is not uncommon for private yacht owners to give gratuities to their crew members for exceptional service.

Can you permanently live on a yacht? Some people choose to live on yachts as their primary residence. However, this lifestyle comes with unique challenges and considerations, including docking fees, maintenance, and access to essential services.

Do you have to pay taxes if you live on a yacht? The tax implications of living on a yacht can vary based on the yacht’s location, the owner’s residency, and other factors. It’s essential to consult with tax professionals to understand the specific tax obligations.

What tax breaks do you get for owning a yacht? Tax breaks for yacht ownership may vary depending on the country and its tax laws. Some countries offer tax incentives for yacht owners, such as reduced VAT rates for chartering or ownership.

Can you take a mortgage out on a yacht? Yes, it is possible to take out a mortgage on a yacht. Yacht financing is available through specialized lenders, similar to other types of asset financing.

Why do the rich buy yachts? For the wealthy, buying a yacht can be a status symbol and a way to indulge in a luxurious lifestyle. Yachts also offer privacy, freedom to travel, and the opportunity to entertain guests in a unique setting.

Do yachts go down in value? Yachts generally depreciate over time, like most luxury assets. However, the rate of depreciation can vary depending on factors such as maintenance, age, and market demand.

What is the point of buying a yacht? The main reasons for buying a yacht include leisure, travel, privacy, entertainment, and enjoying the luxury of the yachting lifestyle.

What are the disadvantages of a yacht? Disadvantages of yacht ownership include high operating costs, maintenance expenses, depreciation, limited usage, and the need for experienced crew.

How quickly do yachts depreciate? Yachts can depreciate quickly, especially during the first few years of ownership. Afterward, the rate of depreciation may slow down, depending on the market demand and condition of the yacht.

What time of year is best to buy a yacht? The best time to buy a yacht can vary based on the market and individual circumstances. Some owners prefer to sell in the offseason, while others might list yachts when demand is high.

How to make money with a yacht? Making money with a yacht can involve chartering it to guests, participating in regattas or events, offering filming locations, or using it for commercial purposes when not in personal use.

Is it cheaper to buy or build a yacht? Building a custom yacht can be more expensive than buying a pre-owned one. Buying a used yacht is generally more cost-effective, but it depends on individual preferences and requirements.

How does it feel to own a yacht? Owning a yacht can provide a sense of luxury, freedom, and exclusivity. However, it also comes with responsibilities and significant costs for maintenance and operations.

Do yacht owners sleep with crew? Relationships between yacht owners and crew members vary and depend on individual situations and personal boundaries. It is essential to maintain professionalism and respect onboard.

Where do rich people keep their yachts? Rich people keep their yachts in various places, including private marinas, superyacht berths, or while cruising in different regions around the world.

What is the average age of a yacht owner? The average age of yacht owners can vary, but many yacht owners tend to be in their 50s or older, as yacht ownership often requires significant financial resources.

How much does a captain make on a private yacht? The salary of a captain on a private yacht can vary based on the yacht’s size, the owner’s preferences, and the captain’s experience. It can range from tens of thousands to over $100,000 per year.

What is Captain Sandy’s salary? As of my knowledge cutoff in September 2021, Captain Sandy Yawn from the reality TV show “Below Deck Mediterranean” reportedly earns a salary of around $120,000 to $130,000 per charter season. However, salaries can change, and it’s always best to verify up-to-date information.

How much do yacht pilots get paid? Yacht pilot salaries can vary widely depending on their experience, the size of the yacht, and the owner’s preferences. Experienced yacht pilots can earn significant salaries.

How many yachts does Bill Gates own? As of my last knowledge update in September 2021, Bill Gates owns several yachts, including the 112-meter superyacht “Luminary” and a luxury yacht named “Aqua.”

Is it cheaper to live on a yacht? Living on a yacht can be cheaper than traditional homeownership in some cases, especially if the yacht owner travels frequently and avoids high-cost housing markets.

What is the largest yacht that doesn’t need a crew? There are some larger yachts, typically under 50 feet, designed for easy single-handed operation and may not require a dedicated crew.

What happens if a yacht runs out of fuel? If a yacht runs out of fuel, it can be stranded at sea until assistance arrives. Proper fuel management and planning are essential to avoid such situations.

Can you take your yacht anywhere? Yachts offer the freedom to travel to various destinations, but they are subject to maritime laws, regulations, and restrictions based on their flag state and the countries they visit.

How big is the gas tank on a yacht? The size of a yacht’s fuel tank varies widely depending on the yacht’s size and type. Larger yachts can have fuel tanks with capacities of thousands of gallons.

What size yacht requires a captain? The size of the yacht that requires a captain can vary based on local regulations and the owner’s preferences. In many regions, yachts over a certain length, such as 75 feet or more, require a licensed captain.

Can a 100-foot yacht cross the Atlantic? Yes, a 100-foot yacht can cross the Atlantic Ocean with proper planning, crew, and navigational equipment. Many yachts of this size are equipped for long-range cruising.

How much does a 100-foot yacht captain earn? The salary of a captain for a 100-foot yacht can vary based on experience, qualifications, and the owner’s preferences. It can range from tens of thousands to over $100,000 per year.

GEG Calculators is a comprehensive online platform that offers a wide range of calculators to cater to various needs. With over 300 calculators covering finance, health, science, mathematics, and more, GEG Calculators provides users with accurate and convenient tools for everyday calculations. The website’s user-friendly interface ensures easy navigation and accessibility, making it suitable for people from all walks of life. Whether it’s financial planning, health assessments, or educational purposes, GEG Calculators has a calculator to suit every requirement. With its reliable and up-to-date calculations, GEG Calculators has become a go-to resource for individuals, professionals, and students seeking quick and precise results for their calculations.

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Running Costs

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• Personal Finance

Can I Afford a Super Yacht?

They’re the preferred luxury vacation transport of millionaires and billionaires from Bono to Stephen Spielberg to Jay Z, conjuring images of the mega-rich cavorting off some dazzling foreign coastline.

“Super yachting” is officially one of the world’s most extravagant hobbies. And there’s a very good reason for that: It costs a massive amount of money. Luxury yachts are among the most expensive asset purchases. And it’s not just that the initial capital , which can run tens to hundreds of millions of dollars, is high. Yachts also come with tremendous annual running costs that often soar over $1 million.

There is no legal definition of “super yacht.” The term generally applies to yachts that are 75 feet or more in length, have a full-time professional crew, and are enjoyed for pleasure or commercial operation. Of course, no two super yachts are the same, and no two super yacht owners have the same taste or yacht aspirations. So outlay and running costs can vary significantly.

Key Takeaways

• A super yacht describes a personal boat that is both larger and more extravagant than typical private yachts.
• These are a luxury item that belongs to those ultra-high-net-worth individuals who can afford them.
• Up-front purchase prices can be in the several millions of dollars, and then ongoing operating and maintenance costs could run another million dollars or more each year.

Post-purchase, an owner should expect to pay around 20% or more of a yacht’s initial purchase price annually to keep it running. So in theory, a $10 million yacht would set you back $2 million a year in operational costs. Fuel (lots of it), vessel insurance, dockage fees, maintenance and repairs, and crew salaries are typically the heftiest running costs.

Dockage fees can run about $350,000 and administration about $70,000. Maintenance and repairs can be in the millions, as can crew salaries. The upkeep of the 590-foot super yacht Azzam, owned by President Sheikh Khalifa bin Zayed Al Nahyan of the United Arab Emirates, is estimated at $60 million per year, although it does come with two helipads and a missile defense system.

Luxury Yacht Group provides salary guidelines for a standard boat crew. It prices the captain of a 100-to-170-foot vessel with more than five years of experience at anywhere up to $192,000 annually. And you’ve still got to factor in chefs, stewards, deckhands, engineers, and more. Just so new yacht owners don’t get hit with any rude cost surprises, Luxury Yacht Group has developed a handy crew costs calculator and another one for operating costs .

Prices vary from port to port around the world, but parking your boat at the most exclusive marinas in high season can set you back well over $4,000 per night. Berthing spots during prime-time events such as the Monaco Grand Prix can cost up to $85,000 or more for a five-day stay. Superyachts.com provides a global marina map with which to search the world’s marinas and their seasonal mooring fees.

Keep in mind the obligatory “ toys .” No floating playground is complete without resident fun machines like Jet Skis and submersibles, not to mention crucial, state-of-the-art leisure  amenities like an infinity pool cinema or floating beach club. Eclipse, owned by Russian businessman Roman Abramovich, features two helicopter pads, a three-man “leisure” submarine, and two swimming pools—one of which converts into a dance floor.

Several banks and marine lenders will finance the purchase of a super yacht , either via a leasing transaction or via a marine mortgage . And offering your super yacht for charter can fetch attractive returns. However, if you have to cost-rationalize the purchase, perhaps buying one of these vessels isn’t the best way to go. Instead, you could always charter one for the same floating luxury feeling without all of the ownership responsibilities. There are also fractional ownership schemes that share financial responsibility (and super yacht enjoyment) among a party of investors without the full capital outlay.

If you happen to be one of the world’s ultra-high-net-worth individuals (UHNWIs) , a lavish floating playground could be right for you. However, if you’re not in the billionaire ’s club, don’t despair. You can still charter, share in a fractional arrangement... or simply opt for a more affordable yacht—less “super,” that is. Still, there will always be a place for the opulent, and incredibly expensive, among the world's elite.

Luxury Yacht Group. " Superyacht Cost Calculator ."

AzureAzure. " Azzam: The World’s Largest Private Superyacht ."

Industry Tap. " World’s Largest Superyacht Comes with a Bullet Proof Master Suite & Missile Defense System ."

Luxury Yacht Group. " Salary Guidelines ," Page 1.

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A Reintroduction to the Superyacht Cost Calculator

In October 2018 Luxury Yacht Group launches the third major revision to our superyacht cost calculator. The newest version has been built using our experience as professional yacht accountants and financial advisors. Our yacht management team has over 100 combined years of experience working with real operating numbers for superyachts. Additionally, we took feedback from hundreds of owners, captains and yachting industry experts who have been among the 15,000 users of the previous versions of this tool to make some major changes.

Some of the big changes:

• Expanded chart of accounts. Six major categories divided into 20 sub categories and a further 70 detail categories, making for a very detailed report.
• Advanced option to manually enter specific details and override our defaults, making the report completely customizable.
• Ability to save multiple budget versions and share your report with colleagues and other interested parties.
• Reports can be generated in US dollars, euros or pounds sterling.
• Very quick basic mode with sliders to adjust budget categories within a range of practical numbers.
• Easy to read graphical design.

Our yacht budget algorithm has been built to give yacht owners a realistic and honest budget projection. We have not created a tool that presents unrealistically low numbers to support our brokerage team. We are in the business of operating yachts to a high standard and the numbers that this tool outputs are realistic to achieve that goal with prudent and sensible decision making.

When using the sliders, we make the following general recommendation for where to position them:

Low – 0 to 25%: Operating at these levels requires very careful planning and prudent decision making. To maintain budget levels in this zone requires compromises from the owner. Owner visits need to be planned well in advance and the captain must be an excellent trainer to bring up crew from lower pay grades to perform well. We generally only recommend a budget in this zone in very special circumstances.

Conservative – 25 to 40%: Yachts operating in this budget level are operated very efficiently. Ownership gives the crew a good amount of notice to plan trips that don't require significant travel between locations. Owner allows for some engineering deficiencies to carry through the cruising season so that they can be repaired efficiently during planned maintenance periods.

Sweet spot – 40 to 65%: Our yacht management team likes operating within this budget area. Owners are still good planners providing at least 21 days' notice before using the yacht, but there is budget available to make urgent repairs should something break during the cruising season. The yacht runs to a high standard and you are hiring great crew.

Generous – 65 to 85%: Standards and flexibility are high. You are operating a busy yacht with occasional last-minute visits. Crew are at the top of their game and delivering to a peak level. Due to heavy work load you may see the need to have extra crew available and possibly rotate some.

Perfection seeking – 85 to 100%: In this zone there are no excuses for the yacht to be anything but perfect at all times, and we would class the yacht as running with unlimited budget.

If you would like a budget expert to discuss your specific yacht and her operating costs, please email [email protected] .

Our price list for our accounting and all services is available on our website at: Price List

The Crew Hiring Process — A Captain’s Advice

Those familiar with the yachting industry understand that crew turnover is a constant. While the selection and hiring process is often seen as a necessary evil, a standardized hiring process can turn a distasteful task into something much simpler. The increased efficiency of a process can translate into identifying the best candidates faster and with less effort.

11 Nov 2015

British Virgin Islands Are Open For Yacht Cruising This Winter.

Category 5 hurricanes are very rare so when the North East Caribbean saw back to back direct hits from Irma and Maria in September of 2017 it was obvious that the upcoming cruising season was going to be drastically altered. 85% of yachts that had planned to cross the Atlantic remained in the Mediterranean and USA based yachts stayed well away. The question everyone is asking, “With the 2017/18 season a total loss can yachts once again sail the Virgin waters?”

17 Aug 2018

The Luxury Job Market

The highest standard of service is rare and attainable for a privileged few. There is international demand for employees with traditional service training.

26 Jan 2016

• Articles and Guides

Yacht Maintenance Cost. The Real Costs of Owning a Superyacht

23rd oct 2023 by samantha wilson.

The superyacht industry has seen an unprecedented boom. While superyachts were always highly sought after commodities, the idea of escaping the crowds, exploring off-the-beaten-path destinations, and having a private holiday have never been more popular. But superyacht holidays are one of the most extravagant luxuries there is, and left to a small percentage of UHNWIs. In fact, luxury yachts top the list of the 10 most expensive asset purchases ever recorded (see our Superyacht FAQs for the largest and most expensive superyachts in the world) . The cost of superyacht ownership is no small undertaking and, as for all boat owners, the purchase price is just the beginning.

Here we take a look at average superyacht operating costs : (for something a bit smaller, check out our guide to creating a boat buying budget .)

Yacht maintenance cost

As a general rule, superyacht owners can expect to spend roughly 10-12% of the initial purchase price on upkeep and running of their yacht. Of course superyachts come in all shapes and sizes ranging from 24 metres to well over 100 metres, and purchase prices will be reflected in the size, age and finish. The average sale price for a superyacht is around $8 million, however a 24 metre yacht could be around $1 million (or less for used superyachts), $11 million in the 40m-50m category, $24 million in the 50m-70m category and around $80 million for yachts of 70m or more. Some of the largest yachts in the world (those over 100 metres in length) can go for up to as $175 million. So a $50 million yacht is likely to cost around $5 million a year to run and maintain, while the largest yachts could run to over $50 million a year. So what is it that costs all the extra every year?

Yacht f uel costs

One of the biggest outgoings in the running of a superyacht is the cost of diesel . To put this into context, a 70 metre-long superyacht will use around 500 litres of diesel an hour just to run the generators. A moving yacht will be using approximately $2,000 per hour whilst underway at a speed of around 18 knots. A smaller yacht will obviously use much less, so a 45 metre yacht will use around 560 litres per hour whilst underway at a rough cost of around $500/hour. Based on around 500 hours of cruising time per year that is approximately $250,000, plus all the time spent at anchor and any fuel used for tenders. 

Berthing and mooring costs

As with all boats big and small, berthing costs are one of the highest expenditures. Marinas vary hugely in price, with the most sought after incurring the highest price tags. The most exclusive marinas can cost around $3,000 per night and be booked up long in advance. 

In general however, dockage is usually priced by the length of the yacht and per night, although long-term contracts are also possible. Berthing fees will not usually include electricity, water and waste removal, which need to be factored in too. When winter sets in, if the yacht isn’t travelling to warmer climes, some yachts opt for dry dock, especially if they’re looking to get maintenance and repairs done. This involves lifting the yacht out of the water with specially designed cranes. 

Owner-on-board costs

Of course the whole point of having a beautiful superyacht is to use it and enjoy it. Costs when the owner is on board go up as a full crew, food, alcohol, flowers and any other entertainment costs such as parties and events need to be accounted for. With most yachts able to accommodate up to 12 guests, a yacht in full cruising and entertaining mode could include everything from helicopters and land transfers, to  

Super yachts crew salaries

Superyacht crews vary in size from three or four members to in excess of 70 members on the largest yachts. When you consider that their salaries, taxes, recruitment fees, food and travel for holiday time and repatriation need to be taken into account, the superyacht crew costs are some of the highest expenditures. A captain’s salary alone can be in excess of $20,000, with some chief engineers on $10,000 and chefs around $5,000-$8,000. Crew wages can easily be around $100,000 per month for larger yachts, while a crew of 8 on a 45 metre yacht could be in the region of $600,000 per year. Add to that figure management agencies, shore based crew, specialist part-time crew such as helicopter pilots and food to feed them all and it’s easy to see why this figure is one of the highest outgoings.  

Super yacht repairs

Superyachts need constant upkeep and maintenance which could include everything from maintenance of the engines, to the thrusters, sails, swimming pool/hot tub, decks, electronics, safety equipment, hull, interior and much more. Superyacht maintenance costs are on-going, but winter is usually the time for major projects in shipyards, and costs can vary hugely depending on the level of work being done. Lifting the yacht out of the water, wrapping it for a re-paint or having a new interior refit are big undertakings. 

Super yachts taxes and insurances

Superyacht taxes and insurances must be factored into the cost of owning a superyacht, with import tax on new vessels up to 20% (see our article on VAT and Brexit ) and insurance policies around 0.8% and 1.2% of the boat’s purchase price each year. 

Communication Costs

An often under looked outgoing in the running of a superyacht is the communication costs. With the internet a must-have on board for both guests and crew, packages for satellite and broadband communications can start from around of $4,000 to $5,000 per month. 

Super yachts tenders and toys

One of the highlights of a superyacht charter or holiday are the amazing array of water toys. From classic Jet skis and scuba gear to new-fangled jet packs and sea bobs, the choice is incredible but not cheap. Tenders too are a must for allowing guests and crew to get to shore, for exploring and for water sports. Some of the custom built models can cost $1 million alone. Add to all this James Bond-style additions such as helicopters and submersibles and the sky is the limit when it comes to spending on amazing tenders and toys. 

Superyachts are some of the most incredible and prestigious machines on the planet, and owning one is an incomparable experience. Whether you’re in a position to buy a superyacht or looking to buy a boat of a smaller length, then Rightboat.com should be your first port of call. With thousands of boats and superyachts represented by the top brokers in the industry, you will be in safe, private and experienced hands. 

Written By: Samantha Wilson

Samantha Wilson has spent her entire life on and around boats, from tiny sailing dinghies all the way up to superyachts. She writes for many boating and yachting publications, top charter agencies, and some of the largest travel businesses in the industry, combining her knowledge and passion of boating, travel and writing to create topical, useful and engaging content.

More from: Samantha Wilson

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The true costs and considerations of owning a superyacht

Cruising the world’s waters in a private floating palace has become quite the status symbol among the mega wealthy. Nothing screams 'success' quite like owning a giant, lavish superyacht, though purchasing one certainly isn’t as simple as picking your favourite from a brochure!

To join the club of superyacht owners is not to make a smart financial investment; it's to make an investment in joy, happiness and status. The superyachts of today are stacked to the brim with extravagant amenities and annual running costs can easily reach - and exceed - seven figures.

The big picture

The overall cost of owning and running a superyacht comprises of costs and expenses from dozens of areas; the cost of the yacht itself is merely a small piece of the puzzle. From staff salaries and insurance to having somewhere to berth, there are many costs and financial decisions to consider with superyacht ownership.

We cover some of the main financial considerations of superyacht ownership below. Read on to see how much your dream superyacht could set you back...

Registering the yacht

Choosing the yacht’s flag state is one of the most important decisions a new yacht owner has to make. The flag state bears the authority and responsibility to enforce regulations over vessels registered there, which in turn has large implications in areas such as tax obligations, liability in international waters, privacy, and whether or not a yacht can be operated as a commercial enterprise.

The Cayman Islands and Marshall Islands are popular with yacht owners for their liberal tax laws, as are Gibraltar and the Isle of Man.

Day-to-day running costs

At the most basic end of the spectrum, normal running costs of a superyacht include fuel, maintenance, crew salaries and mooring fees. Of course, no good yacht is a worthy place to spend time without access to some of the best water toys on the market . This does, however, increase running costs and safety considerations.

Generally, running costs of a yacht are roughly estimated at 10% of the purchase value. In reality, the full amount can quite easily become more than that. The operating cost of a vessel can be estimated with the help of an operating costs calculator, such as this one from LuxYachts .

Somewhere nice to keep her

Be it a prestigious port or picturesque harbour, superyachts often need to be berthed somewhere when they’re not in use by the owner or guests - and in the high season mooring fees aren’t cheap.

Berthing prices vary from port to port around the world, but anchoring your vessel at the most exclusive marinas in high season can set you back well over €3,000 per night. How often, and where an owner berths a yacht, has a huge impact on annual expenditure ( read more about yacht berth pricing and supply .

The yacht model and manufacturer

When it comes to spending money on the yacht itself, there are thousands of prestigious manufacturers and models to choose from. Generally, features and customisation are only limited by the owner’s imagination. Essentially, anything is possible.

A wide range of considerations need to be made, incorporative everything from style preferences and cruising requirements to the amount of guest accommodation. As such, a potential owner will need to consider whether to purchase an existing vessel, or to go new build. This in itself prompts further decisions to be made - do you choose a semi-custom yacht being built to specification on an existing platform, or a full-custom design from scratch?

Be sure to try before you buy

Existing yachts can help new and existing owners to try a wealth of innovative features and designs before they buy. As such, it’s widely recommended that owners step on board or even charter a variety of yachts in a range of styles to gather ideas for their own purchase. This can be done with the help of the industry’s yacht purchase and charter brokers .

In fact, many would-be superyacht owners are beginning to shun ownership in favour of regular chartering in the face of increasing costs and the high levels of maintenance required to keep a superyacht operating effectively. Though, many feel that part of the ultimate yachting experience is owning the yacht itself. With this in mind, chartering can lead to smarter financial decisions when it comes to purchasing what is likely the largest ongoing investment many UHNWIs will make.

Marine financing for superyacht builds

Several banks and marine lenders will finance the purchase of a superyacht, either via a leasing transaction for a fixed period (referred to as a “demise charter” or “bareboat charter”) or via a marine mortgage, registered on the yacht in her flag registry. Generally 10% to 20% of the yacht purchase price is paid at the outset of deposit, and owners typically flip their vessels every three years. This method of ownership is very common and holds many advantages, particular with regards to taxation.

The bottom line

Superyacht ownership is a large financial commitment and one that can be difficult to justify - beyond doing so for pride, status, and complete freedom. If a prospective owner has their heart set on the purchase, then they must invest smartly. This requires: Proper research, hiring a good broker or professional team of advisers and chartering for inspiration. When they feel fully informed on the costs and settle on the idea of ownership, the purchase is sure to bring unbridled joy for many years to come.

Read more Financial Services articles , or search for  Financial Services businesses near you  in Yachting Pages' dedicated search engine.

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Blog | Understanding the Costs of Yacht Ownership

Modern superyachts are a luxury with the latest in entertainment, travel, propulsion, and technology. Some come with standard features and fixtures, but most of them are customized to the owner’s preferences. The true cost of owning a superyacht depends on many factors. Here’s what you should know about the costs of yacht ownership before you jump into the deep end.

The real cost of owning a superyacht

Superyachts are yachts with an overall length (LOA) of 78 feet or more. There are two main costs to consider. Initially, there’s the purchase price of the yacht, which includes the cost, title, and registration. This is followed by the price of maintaining the yacht. Many brokers say to plan on annual costs equal to 10% of the yacht’s purchase price, but this is true only in a small number of cases. In reality, annual maintenance costs can range anywhere from 5% to 30% of a yacht’s purchase price.

Factors such as the usage, brand, type of propulsion, and vessel age can swing your costs either way for seemingly similar yachts. Buyers should evaluate the different operating costs beforehand to avoid unpleasant surprises later on.

Types of operating costs

Costs of yacht ownership especially the operating costs refer to the day-to-day expenses of maintaining a yacht to a reasonable standard. There is some flexibility in these costs, but caution must be exercised when reducing them, as it can affect the yacht’s performance in the long term. Typically, a yacht’s operating costs fall into five major categories.

The age, location, usage, and type of propulsion (engine, sail, or hybrid) will determine a vessel’s fuel expenses. Smaller yachts can bunker about 1,300 gallons at a time, while larger superyachts can bunker over 100,000 gallons. At the current price of $3.60/gallon for MGO, it costs a minimum of $4,700 to fill the tank. You can, however, reduce these costs by refueling further away from popular marinas and cruising at recommended speeds.

Dockage fees

Storage is an important consideration when you own a superyacht. Factors such as the location, season, and facilities provided by a marina affect your final harbor fees. Usually, they are expressed on a dollars-per-foot basis for the LOA of a vessel. An average superyacht sails for about seven weeks a year, in which case the owner can opt for long-term dockage, which is considerably cheaper than transient rates.

Crew salaries

A superyacht experience is best enjoyed when you have a competent crew that delivers value, but that value rarely comes at a low cost. A typical captain will garner wages between $1,000-$1,700 per foot per year based on experience and licenses held. Besides a captain, an owner should also expect to pay the salaries of other crew members, which vary by vessel but can include deck officers, engineers, stewards, and chefs.

The size and use of the vessel will determine how many crew members are required, with charter yachts typically requiring more crew members. Most owners also offer their crew benefits like health insurance and some even offer 401(k) plans . It’s not uncommon for crew compensation to exceed 50% of a yacht’s annual operating cost.

Maintenance and repair

Just like any other substantial investment, a superyacht must be maintained to safeguard its value and ensure dependable operation. This not only grants one peace of mind but also secures the safety of everyone on board. Frequent yacht usage requires regular preventive maintenance to keep the vessel in the best shape. A proper maintenance schedule saves tens of thousands of dollars over a yacht’s lifetime. A well-maintained yacht will also fetch a higher price should you decide to resell. 

Vessel insurance

Insuring your superyacht is financial protection against unforeseen circumstances, such as bad weather, fire, theft, crew injury, and so on. These incidents would otherwise cost you an exorbitant amount. Premiums for superyacht insurance vary by cruising location, size, brand, record, age, crew number, toys on board, and whether the vessel will be chartered. A 78-foot superyacht in Fort Lauderdale for private use, for example, will cost about $11,000 in annual premiums.

The takeaway

Navigating the intricacies of yacht ownership can be a challenge for many buyers. One way to make this task simpler is to hire a yacht management company to handle tasks such as cleaning, painting, manning, maintenance, repairs, insurance, yard scheduling, and more. This liberates the buyer to enjoy the actual yachting experience.

Superyachts are synonymous with glamor and luxury, but owning one requires an ongoing investment. However, if you’re prepared for the real costs of ownership, it’s one of the greatest pleasures money can buy.

Finding the latest news about yachting opportunities and understanding the costs of yacht ownership in South Florida can be challenging. If you would like to benefit from our expertise in these areas, or if you have any questions or comments about this blog post, do not hesitate to contact our Sales Specialists , or call us at  954-900-9988 .

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How Much Does It Cost to Run a Superyacht?

Superyachts range in size starting from around 24m with the largest in the world reaching nearly 200m; they are the definition of opulence and luxury. But, what are the running costs of a Superyacht like?

This piece aims to educate you on what aspects of yachting collectively contribute to the overall running cost of a Superyacht. Many people have the perception that the world of superyachts is reserved for the rich and famous. And, when it comes to owning a yacht and fitting the bill for the annual running costs, they just might be right. 

There are many variables to consider when looking into the running costs of a Superyacht. And, each yacht will vary due to different factors. For example engine size, maximum speed, size of the crew, and size of the yacht. 

The average amount of running a Superyacht annually is 10% of the yacht’s value. In a 2015 report by Towergate insurance, on average, a 100-meter Superyacht with a top speed of 25 knots and 50 crew members should cost around $274 million per annum. 

Let’s start with the crew. The crew live onboard, some during the busy summer months. Or, some year-round. It all depends on the itinerary and requirements of the yacht. Crew costs include salaries, training, living expenses whilst crew are on board, travel expenses, and insurance. 

More experienced crew members will demand higher salaries and the bigger the yacht, the more crew it will require. Some of the larger yachts have multiple chefs, which contributes towards the running cost of Superyacht As well as a whole team of interior staff managing service housekeeping and laundry. And, an engineering team keeping the yacht running. Not forgetting a deck team to ensure the yacht’s exterior is always in pristine condition as well as driving the tenders. And, being navigational experts. 

It is not unusual for crew salaries on larger yachts to reach €100,000 per month. Whereas, a smaller yacht with 3 crew would be closer to €16,000.

The crew will also need uniforms. They will be embroidered with the yachts’ name and logo and be supplied by yachting uniform companies. Crew often have various outfits for day and night. A well as for water sports, casual and formal and several accessories to match. 

Water Toy running costs

Superyacht owners love to have the latest and greatest water sports toys and equipment on board. And surely, they all cost a pretty penny. Most yachts will be equipped with paddleboards and snorkeling equipment. As well as kayaks, jet skis, sea bobs, a tender and a variety of inflatables. As an example, one jet ski can range between $5000 – $20,000 depending on the make, model, and spec. While the cost for a luxury tender can be in the millions. 

Berthing and cruising

Where you plan to keep the yacht is another major factor when looking at the running costs of a Superyacht. The fees charged for a berth in a marina are based on the size and demand of the yacht for the marina. As well as the amenities available for your yacht. For example, a berth in St Tropez in the summer months will cost a lot more than a winter berth. This is due to the high demand in the summer. Ports can charge between €2000 and €3000 per night. And VAT, the use of electricity, water, and garbage disposal will be chargeable on top of that. 

Keeping the yacht stocked is very important. Spare parts, filters, pumps, cleaning supplies, and equipment need to be factored into the running costs of the yacht. These costs can vary. It depends on the equipment on board. Also, it depends on the itinerary of the yacht. As onboard stores will need to be well-stocked if the yacht is cruising in remote areas. 

Insurance, Medical & Maintenance

The 2015 Towergate Insurance report averages insurance costs at +- $240,000 per annum. This would include hull insurance, crew medical insurance, and PNI. 

The report also states that repairs and maintenance can result in running costs being millions per annum. It all depends on the age and usage of the yacht, Maintenance includes regular servicing of the generators and engines. Maintenance on all interior and exterior finishing’s, paintwork, woodwork, and equipment needs to be carried out regularly. This is to keep the Superyacht at a high standard. 

Yachts need hull inspections and surveys. This can be every year, two years, or five years. It needs to be done in a shipyard with the facilities to lift the yacht out of the water- these are called periodic surveys. Each yacht will need to comply with the regulations specific to that yacht depending on its gross tonnage and hull material. The costs will be based on the size of the yacht.

Fuel running costs

Fuel is a huge part of the running costs of a Superyacht! Not only does the yacht need fuel for cruising; the generators require fuel to keep the vessel running while at anchor and underway as well as many of the water sports toys requiring fuel. As an estimation, a 70-meter yacht will consume 500 litres of fuel per hour when the engines are running but the yacht is not moving so this would be an example of when the yacht is at anchor. 

The fuel consumption would be significantly higher when the yacht is cruising and could cost up to €24,000 for an overnight cruise of 12 hours at 18 knots. 

Safety equipment

Yachts, by law, need to comply with certain safety and security regulations and this requires specific equipment to be on board. Each yacht, depending on size, design, and the maximum number of crew and guests on board, will have unique requirements. This equipment will include firefighting equipment, life jackets, immersion suits, life rafts, and medical supplies. All of this needs to be regularly updated and serviced as requirements and maritime regulations change. 

Shore personnel 

The last expense is onshore personnel. This includes the services of a management company, or charter brokerage if the yacht is commercially registered. The management company will manage items such as expenses, crew payroll, and crew holidays, as well as any booking of refits or maintenance works. A charter management company will market the yacht to reserve charters for the yacht in the months it is available. 

Management fees will depend on each company as well as the services you procure.

Visit West Nautical for more information on yacht management services.

For the latest Superyacht News, click here .

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The Ultimate Guide to Understanding the Cost of Owning a Super Yacht

Introduction.

A super yacht is the ultimate symbol of luxury and wealth. These vessels are typically over 80 feet long and come equipped with all the amenities one could imagine, from swimming pools to movie theaters. However, owning a super yacht is not for the faint of heart, as the cost of ownership can be astronomical. The initial purchase cost of a super yacht is just the beginning. Maintenance and operating costs can easily exceed millions of dollars per year . This includes everything from fuel and crew salaries to annual maintenance and repairs. In addition, there are additional costs to consider, such as insurance and dockage fees. Despite the high cost of ownership, many people still dream of owning a super yacht. However, it's important to understand the true cost of ownership before taking the plunge. In this guide, we'll break down the various costs associated with owning a super yacht and provide tips on how to reduce those costs. By the end of this guide, you'll have a better understanding of whether owning a super yacht is worth the investment.

Table of Content

The initial purchase cost of a super yacht, maintenance and operating costs, additional costs of owning a super yacht, ways to reduce the cost of owning a super yacht.

When it comes to owning a super yacht, the initial purchase cost is often the first thing that comes to mind. And for good reason - it's a significant investment. The cost of a super yacht can vary greatly depending on a number of factors, including the size, age, and features of the vessel. At the lower end of the spectrum, a smaller, used super yacht can be purchased for around $1 million. However, for those looking for something more luxurious, the price tag can easily reach into the hundreds of millions. In fact, some of the most expensive super yachts ever built have cost upwards of $500 million. So, what factors affect the cost of a super yacht? One of the biggest is size. The larger the yacht, the more expensive it will be. Other factors include the materials used in construction, the level of customization, and the technology and features onboard. Despite the high cost, many people still choose to invest in a super yacht. For some, it's a status symbol, while for others, it's a way to enjoy the open sea in luxury and comfort. But before making the decision to purchase a super yacht, it's important to consider all of the costs involved, including maintenance and operating costs, insurance, and dockage fees. Only then can you determine whether owning a super yacht is truly worth the investment.

Owning a super yacht is not just about the initial purchase cost, but also about the ongoing maintenance and operating costs. These costs can add up quickly and significantly impact the overall cost of owning a super yacht. Annual maintenance and repairs are a necessary expense for any super yacht owner. The cost of maintenance can vary depending on the size and age of the yacht, as well as the level of upkeep required. For example, a 100-foot yacht may require an annual maintenance cost of around $500,000, while a 200-foot yacht could cost upwards of $1 million per year. In addition to maintenance costs, operating a super yacht also comes with significant expenses. Fuel costs alone can be astronomical, with some super yachts consuming up to 500 gallons of fuel per hour. Crew salaries are another major expense, with a full-time crew of 10-15 people costing around $2-3 million per year. It's important to note that these costs are ongoing and can quickly add up. However, there are ways to reduce these expenses. For example, some super yacht owners choose to charter their yacht when they're not using it, which can help offset some of the operating costs. Others may choose to share ownership with other individuals or companies, which can also help reduce the overall cost of ownership. Ultimately, the maintenance and operating costs of owning a super yacht are significant and should be carefully considered before making a purchase. While the luxury and prestige of owning a super yacht may be appealing, it's important to weigh the costs and benefits to determine if it's truly worth the investment.

Owning a super yacht comes with additional costs beyond the initial purchase and maintenance expenses. These costs can add up quickly and should be taken into consideration before making the decision to buy a super yacht. One of the most significant additional costs of owning a super yacht is insurance. Super yachts are expensive assets, and it is essential to have adequate insurance coverage to protect against any potential damage or loss. The cost of insurance for a super yacht can vary widely based on factors such as the value of the yacht, its intended use, and the cruising area. It is not uncommon for insurance premiums to cost hundreds of thousands of dollars per year for a super yacht. Another significant additional cost of owning a super yacht is dockage fees. Dockage fees are the fees charged by marinas or yacht clubs for mooring a yacht. The cost of dockage fees can vary widely based on the location and the amenities offered by the marina. In popular yachting destinations such as the French Riviera or the Caribbean, dockage fees can easily cost tens of thousands of dollars per week. Other additional costs of owning a super yacht can include crew salaries, which can be a significant expense for larger yachts. Additionally, there are costs associated with outfitting the yacht with the latest technology and amenities, as well as the cost of any necessary repairs or upgrades. While these additional costs can be significant, there are ways to reduce them. For example, some yacht owners choose to charter their yachts when they are not using them, which can help offset some of the costs. Another option is to share ownership of a yacht with other individuals, which can help spread out the costs. Overall, it is essential to consider all of the additional costs of owning a super yacht before making the decision to buy one. While the costs can be significant, for those who can afford it, the rewards of owning a super yacht can be well worth it.

Owning a super yacht is a dream for many, but the cost of owning one can be overwhelming. Fortunately, there are ways to reduce the cost of owning a super yacht without sacrificing the luxury and enjoyment that comes with it. One option is chartering. By chartering your super yacht, you can earn income to offset the cost of ownership. Chartering also allows you to share the cost of maintenance and operating expenses with the charter guests. However, it's important to note that chartering your super yacht may limit your personal use of the vessel. Another option is sharing ownership. By sharing ownership with others, you can split the cost of purchasing and maintaining the super yacht. This option also allows you to share the use of the vessel with others. However, it's important to have a clear agreement in place with the other owners to avoid any conflicts. If you're looking to reduce the cost of operating your super yacht, there are a few things you can do. First, consider reducing the size of your crew. A smaller crew means lower salaries and benefits costs. You can also reduce fuel costs by slowing down your vessel and optimizing your route. Finally, consider purchasing a pre-owned super yacht. While a new super yacht may be tempting, a pre-owned vessel can offer significant cost savings. Just be sure to have the vessel inspected by a qualified professional before making a purchase. In conclusion, owning a super yacht doesn't have to break the bank. By considering these cost-saving options, you can enjoy the luxury and prestige of owning a super yacht without sacrificing your financial stability.

After exploring the various costs associated with owning a super yacht, it's clear that this is not a cheap endeavor. From the initial purchase cost to the ongoing maintenance and operating expenses, owning a super yacht requires a significant financial investment. However, for those who can afford it, the benefits of owning a super yacht can be unparalleled. Despite the high costs, there are ways to reduce the financial burden of owning a super yacht. Chartering and sharing ownership are two options that can help offset some of the costs. While these options may not be feasible for everyone, they are worth considering for those who want to enjoy the benefits of owning a super yacht without breaking the bank. Ultimately, whether owning a super yacht is worth the cost is a personal decision. For some, the luxury and freedom that comes with owning a super yacht is priceless. For others, the high costs simply aren't worth it. It's important to carefully consider all of the costs and benefits before making a decision about whether to invest in a super yacht.

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How much does a yacht cost | ultimate breakdown guide.

 October 14, 2019

Complete guide to “How much does a yacht cost?” including superyachts and megayachts. Includes the cost of owning and operating a yacht. Yachts and superyachts are symbols of success. They appeal to wealthy individuals but are also extremely useful business assets. In this article, we’ll explore how much does a yacht cost. Also, we’ll answer how much does a superyacht cost and how much does a mega yacht cost. Then we’ll identify additional yacht costs such as fees and taxes. Next, we’ll give example breakdowns of the price of yacht and the price of a superyacht. Finally, we’ll explain how Assets America ® can help fund your transaction, and then answer frequently asked questions regarding the cost of yacht. Note that we’ll devote a separate article to yacht operation and maintenance costs. This article focuses on how much does it cost to buy a yacht.

How Much Does a Yacht Cost?

To know the context for how much does a yacht cost, we define some important terms.

Yacht Terms

• Yacht: A sailing or powered watercraft between 39 and 78 feet in length, accommodating up to 6 guests.
• Superyacht: A luxury yacht ranging in size from 78 to 200 feet in length, accommodating 6 to 12 guests.
• Megayacht: A luxury yacht greater than 200 feet long holding more than a dozen guests.
• Cabin Cruiser : A luxury powered boat between 23 and 38 feet in length.
• Day Sailing Yacht: Small yachts, often with a retractable keel, daggerboard , or centerboard and no cabin.
• Weekender Yacht: Medium-sized yachts, typically up to 31-feet long. Usually, they have lifting keels or twin keels allowing shallow-water operation for two-to-three-day journeys. Normally, weekender yachts have a simple cabin sleeping two to four passengers along with a small galley.
• Cruising Yacht: The most common private yacht, with good handling, onboard comfort, sufficient interior space, and capable performance. Typically, they have a teardrop-planform hull with a deep single-fin keel.
• Luxury Sailing Yacht: Larger yachts powered by wind and engines, with many luxury features.       Typically, yacht makers construct these boats with fiberglass hulls and plenty of automation, lighting, navigation aids, hot water, and more.
• Racing Yachts: Yachts optimized for fast sailing, with heavy and deep bulb keels, tall masts, and large sails.

Average Cost of Yacht

New yachts over 100-feet long have an average price of a yacht equal to $1 million per 3.3 feet in length. In other words, a 100-foot yacht will, on average, cost more than $30 million. Older yachts below 85 feet are less expensive. For example, an 84-foot yacht originally built in 2002 and renovated in 2015 sold for $1.45 million.

The average price of a yacht that is preowned, entry-level, and in the 30 to 35 foot range, is about $100,000.

How Assets America ® Can Help

Whether you need to borrow $20 million or $1 billion to acquire your yacht, Assets America ® can most assuredly help.  We can arrange short-term or long-term financing for the purchase or refit of yachts, superyachts and megayachts. We can provide financing much more rapidly than most typical funding sources do, and we can arrange financing even if your bank declines.  Call us today at 206-622-3000 for a confidential consultation, or simply fill out the below form and expect and prompt response!

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How much does a superyacht cost.

Superyacht prices are high but variable. For example, the world’s most expensive superyacht (the History Supreme) has a price of $4.5 billion. And at only 100 feet, it is too small to qualify as a megayacht, even though it certainly has a mega-price! On the other hand, a world-famous golfer purchased a 155-foot superyacht for $20 million, a sweet deal. The average price of a superyacht is $275 million.

How Much Does a Megayacht Cost?

The most expensive megayacht, measuring in at 536 feet, cost $1.5 billion. A 1990, 344-foot megayacht can be yours for $210 million. So, the prices of megayachts can vary greatly. In other words, there is no clear answer to how much does a mega yacht cost.

Video:  Million Pound Mega Yachts for Sale – Documentary 2019

Additional Costs of a Yacht

A few states don’t have sales tax: Delaware, Montana, New Hampshire, Oregon — and to some extent Alaska. If you buy a yacht in any other state, you’ll owe state sales tax. On a $1 billion yacht purchase, a state like Texas with 6.25% sales tax will collect $62.5 million. You can buy a yacht in a state without sales tax and use it in another state. However, you will eventually have to pay a use tax. Florida caps yacht sales tax at $18,000, but California has no cap.

Municipalities that charge local sales tax could add a percentage point or two to your tax bill.

Most states also assess property taxes on yachts. Marinas may assess a tax on boat slips. Some states will refund fuel taxes on yachts since they don’t use roads.

Yachts with bathroom, eating, and sleeping facilities qualify as second homes. You can deduct the interest on the yacht’s mortgage, but national tax law caps the deduction at $750,000.

A yacht purchased for business purposes is a capital asset that you can depreciate. This would apply to a charter, rental, or fishing yacht that you use to generate income. If you buy a used business yacht for $1 million or less, it might qualify as Section 179 property. If so, you can deduct the full price in the year of purchase.

There are some minor fees you may have to pay when you acquire a boat. For example, you may have to register your yacht with the International Registry, which has fees of $550 to $1,500. Also, you may pay an annual tonnage tax, a ship radio station license fee, and certificate of insurance. Other fees include those for :

• An annual Maritime Security and Compliance fee
• Private Yacht Limited Charter Compliance Certificate
• Minimum Safe Manning Certificate
• Continuous Synopsis Record (CSR) Document
• Annual Yacht Service
• Intended Registration and Vessel Under Construction Registration

Cost Breakdown

When you want to know how much does a yacht cost, you need to know the cost factors. A yacht’s price directly ties to its construction costs, which include:

• Design: The design requires expertise in marine and mechanical engineering. For example, the designers must undertake many stability and hydrodynamic studies. Also, the design must be esthetically pleasing.
• Construction: It can take many months to construct a large yacht. You must factor in materials, equipment, and labor. Luxury-yacht buyers may want expensive and/or rare materials. One yacht, the infamous History Supreme, contains dinosaur fossils and meteorite stone! But less outlandish materials, such as fine woods and precious metals, still contribute to high construction costs.
• Engine: The number and power of yacht engines can greatly impact cost. Naturally, all things being equal, a sailing yacht should cost less than a comparable motor yacht. It requires huge power to propel a large megayacht, and an elaborate engine room to operate those engines.
• Interiors: Large yachts have many rooms, including galleys, heads, bedrooms, meeting rooms and more. In addition, electronics are important cost items.

FAQs — How Much Does a Yacht Cost?

How much does a 50-foot yacht cost.

A 50-foot yacht is a good candidate for weekend duty. A 2014 convertible sportfish costs just under $2 million. An example price of yacht (51-foot 2013 Azium Magellano 50) is $670,760. A 52-foot 2017 Carver C52 Command Bridge sells for $1,149,000.

What is the cost to build a yacht?

Mid-level yachts cost about $25 to $35 per pound to build. Higher-level-yachts have average construction costs pf $45 to $65 per pound. The top vessels built with exotic materials and hi-tech systems can cost $80/pound to build.

How much does a 60-foot yacht cost?

A 60-foot yacht is about the largest size that an owner operates. A new Hatteras M60 can easily cost around $3 million. However, you can get a 2007 60-foot Sunreef 62 for $735,000.

How much does a 100-foot yacht cost?

Superyachts in this range contain many amenities. You can buy a new 100-foot AB 100 for just over $8.8 million. But let’s face it, you can spend hundreds of millions on big yachts. Your only limits are your imagination and most importantly, of course, your wallet!

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• Yacht Buyer’s Guide

Cost of owning a yacht

•   Nautical Expert
• Yacht Buyer's Guide

Updated on January 21st, 2024

In this article, we will look at how much it actually costs to own and maintain a sailboat, powerboat or superyacht per year using examples.

For buyers of new and used yachts, the cost of maintaining and operating is often either misrepresented or even ignored altogether. Even if the boat is not in use, this in no way excludes the cost of storage and maintenance to keep it running.

Owners who go to sea only a couple of times a season, and at the same time do not rent a yacht for charter, quickly realize that their own boat is an expensive pleasure and its sale becomes a very predictable result. This is logical, because in such cases it is much easier to rent any yacht and not have any problems.

Cost of ownership calculation

The generally accepted rule is that, on average, every year you have to allocate a budget equal to 10-12% of the cost of the yacht. It is important to understand that the calculations are based on the market price of a new boat, and not on the price for which you bought it if it is pre-owned.

In reality, the total cost of storing, maintaining and operating both a motorboat and a sailboat can fluctuate greatly in different directions. It depends on the following factors:

• Willingness to do some work independently

Very old yachts accumulate sores that often come out at the same time. But, on the other hand, used boats that have successfully sailed for a couple of seasons are quite profitable to buy, since the equipment has been tested, and everything that could break has already broken and been replaced. However, this does not mean that there will be no more breakdowns in the future.

The cost of mooring, lifting and lowering, maintenance of the hull and engine, as well as various types of taxes and duties depend on the place of registration and basing of your yacht. In particular, mooring fees in a European marina are much higher than in southern latitudes.

As for the type of yacht, of course, for a sailboat, fuel costs can be neglected, while even a small planing yacht at cruising speed turns into a ruthless fuel guzzler. The total cost of ownership can vary greatly due to the number of hours wound per season.

The price tag for operating a boat can be greatly reduced if you are willing to do a number of repairs and maintenance yourself. Cruise sailors and that group of people who permanently live on board are sometimes able to completely overhaul a diesel engine with their own hands, not to mention the usual oil change or sail patching.

Now there is an active trend towards the full electrification of watercraft. Thus, fiddling with internal combustion engines for many sailors is a thing of the past, along with the cost of repairing them, exhaust odors and dirt from technical fluids.

Main items of expenditure

We can highlight the most important points that make up the bulk of the budget for ownership:

• Yacht insurance
• Mooring and winter storage
• Scheduled maintenance
• Operating costs
• Crew (if any)

The amount of insurance premiums depends on the country and type of insurance. Often, owners try to save on insurance, which, of course, is not always justified.

The cost of mooring, as we noted above, is strongly tied to the place on the map. In all marinas, the price for a berth is calculated depending on the length of the yacht. But if you bought a catamaran, then be prepared for the fact that, firstly, not all marinas can find a place for you, and secondly, its cost will be higher. Sometimes almost double.

Scheduled maintenance includes all types of work provided by manufacturers of engines and other equipment. On average, engine maintenance is required every 150 hours. The cost of such work cannot be averaged. It will start somewhere from €500 for small sailboats and end with astronomical numbers for motor superyachts.

Operating costs are, first of all, gasoline or diesel fuel, sailing equipment, as well as batteries, if we talk about electric motors of eco-yachts.

On superyachts from 24 meters, you cannot do without a crew, whose salary can cost more than a million euros a year.

Taxes for small boats, especially sailing boats, can be practically ignored, but for superyachts they are already quite noticeable, so the owners are taking all measures to reduce them, including “convenient” registration flags.

The real cost of maintaining a yacht

It can be assumed that most sailing cruising yachtsmen on a tight budget annually spend no more than 7% of the original cost of the yacht on maintenance, trying to do most of the repairs themselves. But the owners of motor yachts are already closer to the generally accepted 10-12%.

For those who want to buy a very old yacht, you need to increase the figure to 20%. Annual expenses, as well as one-time investments for restoration, can be overwhelming for someone who decides to save a lot. As the saying goes, the cheapest boats are often the most expensive. It should also be noted that almost all superyachts and even ordinary cruisers are chartered in their free time. This allows you to at least somehow compensate for the expenses.

There are various calculators online that help you calculate the cost of owning a cruise boat or yacht, but most of them are based on the same ten percent. And if you find such a calculator on the website of some charter company, then its results can be greatly inflated for obvious reasons.

Let’s take as an example a 180ft (55m) superyacht built by a good shipyard like Amels. On average, such a yacht requires about €4.7 million per year for its maintenance.

Of these, €400,000 is spent on fuel, €350,000 on the marina, €240,000 on insurance, another €1 million is the cost of repairs and maintenance, and the largest amount must be paid to the crew for salaries – €1.4 million. If we consider that the cost of such a luxury yacht is about €45 million, then we just get about 10-12% of its original price, necessary for its maintenance.

To compensate for these costs, such a yacht will certainly be chartered, which can bring in about €250,000 per week.

Other expenses

The equipment on the yacht has its own resource, after which it will be necessary to take care of a major overhaul or replacement of entire blocks. This is an expensive pleasure for a boat of any size.

You can focus on the approximate service life of different components:

• Main engine (and diesel generators): 20 years
• Mast: 20-30 years
• Standing rigging: 2-5 years (racing), 10 years (cruising)
• Sails: 1-3 years (racing), 10-15 years (quality cruising)
• Running rigging: up to 5-10 years
• Deck equipment: 20-30 years
• Upholstery: 10-20 years
• Life raft: 12 years
• Life jackets: 5-10 years
• Batteries: 3-8 years
• Electronics: 8-10 years
• Teak deck: 10-20 years

Based on this, we can conclude that the presence of free cash in the pocket of the shipowner will never hurt.

However, all expenses fade against the background of the feeling that a yacht standing at the pier and ready for the next trip can give. The excitement you can experience sailing on a clear night under a starry sky in the middle of the Atlantic will instantly make you forget everything else. After all, we only live once. But it is not exactly.

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Discover the hidden costs of yacht ownership.

Owning a superyacht is an exclusive opportunity. There are currently just over 10,000 superyachts in the world with only 200-250 new builds delivered each year. 

If you’re thinking of becoming the owner of a superyacht, you’ll notice that the yachting industry constantly writes and shares articles about fabulous yacht destinations, new model yachts and new yachts on the market, new toys and tenders and upcoming boat shows. There are so many obvious reasons why you will love owning a superyacht. However, something important to consider in your decision process is the real cost of owning one.

Some things to consider before deciding to purchase a superyacht:

Purchase Cost - New or used superyacht pricing varies widely based on the yacht size, age and other factors such as the builder, guest capacity, speed, range and more.  

Operating Costs - 10% -15% of the purchase price is an estimate of annual operating costs, but the vast range of yacht size, operating location, and usage type will determine what your usage cost could really be.

Crew – Salary, payroll taxes, recruitment fees, uniforms, health insurance, food, and travel for vacation and repatriation are included in crew cost.  You’ll have to consider the amount of crew you need and what caliber of service you’ll require.

Dockage –  Dockage can be bought or rented. Rentals are priced per foot of the yacht’s full length and per night, although contract rates for longer periods may be available. Electricity, fresh water, and waste removal are all additional costs.

Fuel –The goal of yachting is traveling; thus you will be burning fuel. The faster you go, the more fuel you will burn. You can work with your captain or engineer to determine the most efficient speed for your yacht. You’ll also need to factor in fuel cost for generators plus any additional for tenders and jet skis.

New Destinations – Every time you want to move your yacht to an exciting new destination, you will need to decide to put the yacht on a transport or pay for the fuel to transport the yacht on her own bottom. There is a high cost to moving the yacht to a new destination.  

Communications – Everyone onboard: owner, crew, and guests, will want to remain connected to the internet. Additional communications costs include satellite TV subscriptions, crew cell phone costs, mail and freight.

Hull and Liability Insurance – This is a yachting requirement and is an expensive line item on the budget.

Maintenance - There will be a spreadsheet of items that need to be on your maintenance schedule. You will spend about 8 weeks a year in a yard. Keeping up on maintenance is key to a high resale value for the yacht.

Other costs: Safety and survey costs, upkeep of the navigation equipment, computing support, car rentals or crew car. 

Capital Improvement Budget - It is important to have a budget for any major items that may need to be addressed on the yacht. Ideally that is 2-3% of the purchase price yearly.  

Consumables - Everything that you consume while you and your guests are onboard like food, drink, or fuel is another expense.

Amenities - No yacht is complete without jet skis, floating beach club, slides, water toys, beach set ups and a fabulous tender.

Depreciation - A rule of thumb is to expect 10% depreciation in your yacht’s worth in year one and 6-8% for the following four or five years. The vessel's depreciation will typically level off to just a few percentage points after that.

There are numerous ways to decrease the overall cost of yacht ownership and still enjoy yachting to the fullest. For example: chartering out the yacht during weeks you are not using it. In this case, you can make a profit instead of paying dockage fees while it sits unused. Another option is to sell a share of your yacht. AvYachts can help pair you with a like-minded owner and create a schedule that works for both parties. In this case, you can yacht when you want–but share the costs when you’re not.

AvYachts is the expert in yacht share brokerage. Whether you’re looking to sell a share of your yacht to a like-minded partner, or you want to buy a share of a yacht, our dedicated team of yacht brokers and veteran matchmakers is here to guide you every step of the way.  Let us match you with just the right yacht, just the right partners and just the right ownership structure for you. Yacht to the fullest without the full costs of ownership. 

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Understanding the Cost of Maintaining a Superyacht

Embarking on a journey aboard a superyacht is the epitome of luxury and indulgence. The gleaming vessels, often equipped with state-of-the-art amenities, promise an unparalleled experience on the open seas. However, behind the glamour and sophistication lies a crucial aspect that owners and enthusiasts must reckon with: the cost of maintaining a superyacht. Exploring Simpson Superyachts’ guide on Superyacht upkeep expenses will help you gain valuable insights into the financial considerations associated with maintaining these floating palaces.

The Initial Investment: A Drop in the Ocean

Owning a superyacht begins with a substantial upfront investment that rivals the cost of some small islands. The initial purchase price often amounts to hundreds of millions, if not billions, depending on the size, brand, and onboard features. However, the acquisition cost is just the tip of the iceberg. Once you set sail into the world of superyacht ownership, a sea of ongoing expenses awaits.

Annual Operating Costs: Navigating the Financial Seas

Maintaining a superyacht involves significant annual operating costs that cover a spectrum of essential services. From crew salaries and training to insurance, mooring fees, and regular maintenance, these expenses can add up swiftly. Navigating these financial seas requires careful budgeting and strategic planning. Crew salaries alone can account for a substantial portion of the annual budget, especially on larger yachts where a skilled and attentive crew is essential for a seamless and enjoyable experience.

Fueling the Experience: The Price of Luxury Travel

Fuel costs constitute a considerable chunk of the annual operating expenses for a superyacht. These majestic vessels, with powerful engines capable of covering vast distances, are notorious for their voracious appetite for fuel. Cruising at high speeds or exploring remote and exotic destinations can significantly escalate fuel expenditures. As the price of fuel fluctuates, yacht owners must adapt to the dynamic nature of this ongoing cost, impacting their travel plans and overall budget.

Maintenance and Repairs: Sailing Smoothly Requires Investment

Ensuring a superyacht sails smoothly requires ongoing maintenance and occasional repairs. Routine maintenance includes tasks like antifouling the hull, servicing the engines, and inspecting the onboard systems. Additionally, unforeseen issues may arise, necessitating immediate repairs. The cost of shipyard stays, replacement parts, and the expertise of marine technicians all contribute to the overall maintenance expenses. Moreover, as technology evolves, yacht owners often find themselves upgrading onboard systems and amenities to stay abreast of the latest innovations, adding an extra layer to the financial commitment.

Docking and Storage: Paying for Prime Locations

Securing a berth in a prestigious marina or docking at a sought-after destination comes with its own set of costs. Marinas in popular locations often charge premium prices for their facilities, especially during peak seasons. The convenience and prestige of being moored in the heart of a vibrant coastal city or nestled in a secluded tropical paradise contribute to the allure but also factor into the overall cost equation. Storage costs can accumulate during periods of inactivity, such as when the yacht is not in use or undergoing extensive maintenance.

Crew Training and Welfare: Investing in Excellence

The crew on a superyacht plays a pivotal role in ensuring a seamless and enjoyable experience for the owner and guests. Investing in crew training and welfare is not just a necessity but a hallmark of excellence. Ongoing training programs, certifications, and competitive salaries are all part of the package to attract and retain top-tier talent. A well-trained and content crew enhances the overall value of the superyacht experience, but it also constitutes a recurring expense that owners must account for.

Insurance Navigating Risks on Financial Waters

Comprehensive insurance coverage is a non-negotiable aspect of superyacht ownership. Given the size and value of these vessels, insurance costs can be substantial. Policies typically cover a range of risks, including damage to the yacht, liability for accidents or injuries, and even kidnapping and ransom scenarios. Tailoring an insurance policy to meet the specific needs of the yacht and its intended use requires careful consideration, and the premiums contribute to the ongoing cost of ownership.

Technology and Amenities: Staying at the Cutting Edge

Superyacht owners often desire the latest technology and amenities to maintain the vessel’s cutting-edge status. Upgrading communication systems, navigation equipment, entertainment systems, and other onboard features is a continuous process to meet evolving standards and the owner’s preferences. Staying at the forefront of technological advancements enhances the overall yachting experience but also adds to the cost of ownership.

Environmental Compliance: Navigating Green Initiatives

As environmental concerns become more prominent, superyacht owners face increasing pressure to adhere to eco-friendly practices. Retrofitting yachts with sustainable technologies, adhering to emission standards, and incorporating green initiatives all contribute to the environmental compliance costs. While these measures are crucial for preserving the oceans and meeting global sustainability goals, they introduce additional financial considerations for yacht owners committed to minimizing their ecological footprint.

Conclusion: Navigating the Seas of Superyacht Ownership

Owning and maintaining a superyacht is undoubtedly a luxurious pursuit, offering unparalleled experiences on the high seas. However, it’s essential to approach this lifestyle with a clear understanding of the financial commitment involved. From the initial purchase price to the ongoing operating costs, every aspect requires meticulous consideration and strategic planning. 

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The Various Costs of Owning a Boat or Yacht

Prepare for your next boat purchase..

Updated: November 18, 2020

About 95% of owners have boats 26 feet or less at an average cost of $18,000, according to the National Marine Manufacturers Association , and more than 80% of those buyers shelled out for used or brokerage boats. But buying a boat or yacht is just the start. Bentley Collins of Sabre Yachts says to budget 10% of the boat’s value annually to cover expenses. And then there are the extras.

About 5% of the world’s ultra-high-net-worth individuals own a yacht. A 180′ superyacht costs $4.75 million annually to maintain and run. Kitty McGowan of the US Superyacht Association says that among the costs, you need to budget $400,000 for fuel, $350,000 for dockage, $240,000 for vessel insurance, $1 million for maintenance and repairs, and $1.4 million for crew salaries. We broke down how much it costs to own a boat so you can prepare for your next purchase.

Oil And Gas

Fuel prices can make a big dent in your budget if you’re relying on an engine rather than sails. As a point of reference, it costs about $400 to fill the 80-gallon tank of a 27′ Chaparral with a single-engine. A Tiara 4500 Sovran — a heavy-duty powerboat that is considered fuel-efficient — costs about $1,750 to fill a 350-gallon tank. An oil change can run you about $300.

Title, Registration, And Insurance

The amount you pay for title, registration, and insurance depends on the state and the boat’s size. For instance, the title fee for a new boat in Oregon is $75. Registration is about $8 per foot. In Connecticut, registration runs about $105 for a 26-foot fiberglass boat. Like a car, you need insurance. Figure out the cost at about 1.5% of the insured value of the boat, which covers the boat but not anything silly you might do — such as running into a sand bar.

Maintenance

Cut costs by washing your boat with fresh water after each use. Even then, you may need to repaint the bottom of the boat with anti-fouling paint once a year. If you have a sailboat , plan on replacing the sails every three to five years. With powerboats , you’ll need to check and service the engines more frequently. All of these extras add up — from about $300 per year for cleaners and soaps to several hundred dollars on waxing the hull and treating fabric.

Winter Storage

Storage, which includes hauling the boat, dry-docking it, shrink-wrapping it, and blocking it (so it doesn’t move), costs about $3,000 for a 38′ boat in Connecticut and about $1,500 in Maine. Dockage can also run you a couple hundred to a thousand dollars per month if you’re not on the waterfront.

High-quality life jackets can run about $70 each. A package with a safety gear bag, a Freon horn, a fire extinguisher, a visual distress signal kit as well as dock lines costs $170. Add to electronics — such as a GPS chart plotter and a radio system — items that easily tack on an extra $20,000 per boat.

Toys And Tenders

Toys may not be a priority on your yacht, but jet skis, seabobs, kayaks, canoes, tenders, paddleboards, and inflatables cost an extra few thousand dollars each. A seabob costs about $1,000. And if you have kids, the RedShark 10-man Towable 17′ floater will bring hours of fun attached to the back of your boat for about $1,600.

Most Cost-Efficient Boat

Trawlers are like sailboats but without the mast. They come with a cabin, air conditioning, and heating but not much deck space. They travel at about 8 knots per hour and cost about $160,000 to buy used. They are fuel-efficient, using about 50 to 100 gallons of fuel a year. Trawlers are perfect for families and liveaboards.

If you’re in the market to buy a new or used boat or yacht, consider all of the costs involved. From cleaning to storage, there’s always a fee — yet if that’s the cost of pure bliss on the water, then so be it. Contact Denison Yachting to find your next new or used boat.

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Source: Washington Post. Bloomberg Rankings examined the costs associated with buying and owning a boat. Costs vary and not all listed apply to everyone.

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Hidden Costs Behind Operating A Superyacht

• Hidden Costs Behind Operating A…

The richest of the rich often tend to have a particular love for this luxury vacation transport. Cruising in a superyacht on some foreign coastline while enjoying all the world’s luxuries is something that you will see millionaires and billionaires often partaking in.

If you don’t know about this phenomenon, let us introduce you to the world of “super yachting” world. By far one of the most lavish hobbies that one can have. Well, there is a reason why it is considered the most expensive hobby. Buying a superyacht is one of the most expensive asset purchases, but it doesn’t end at that. Operating and maintaining a luxury superyacht can cost up to tens to hundreds of millions of dollars, depending on the size of the yacht. These operating prices can even soar over a million dollars.

Well, what is exactly considered to be a superyacht? There is no concrete definition of what is regarded to be a superyacht, but the term is generally applied to yachts that are above 75 feet and more in overall length. The yacht also needs to operate with a full-time, highly trained crew and can be enjoyed commercially and for pleasure.

What Are All The Costs Of Running A Superyacht?

Running costs.

It is often noted that after the purchase of a yacht, the owner is expected to pay approximately 20% or more of the initial purchase cost to actually operate the entire yacht. So hypothetically speaking, if the yacht was purchased for $10 million, operational costs can run up to $2 million a year. This cost will entail fuel, insurance, dockage fees, maintenance costs, repairs, crew salary, and more.

A standard boat crew has a particular salary guideline that needs to be followed. The average salary of a captain of a 100-to-170-foot vessel with more than five years of experience can cost up to $192,000 per annum. Apart from that, you might also have to consider stewards, engineers, deckhands, chefs, and more will increase the costs of crew salary. To help new yacht owners navigate these prices, Luxury Yacht Group has devised a convenient crew costs calculator and another one for operating costs.

If you want to travel all around the world and park your yacht in the most exclusive marinas, especially during prime season, you might face a setback of approximately $4,000 per night. The most exclusive berthing sports like Monaco Grand Prix and more can easily cost you upwards of $85,000 or more for a five-day stay. Superyachts.com supplies an international marina map to search the world’s marinas and their mooring fees.

To utilize your yacht to the fullest, you need to have the toy to help you make the most of your experience. A superyacht is not complete without some jet skis, submersibles, and more. Apart from that, a superyacht also usually includes state-of-the-art amenities such as an infinity pool, cinema, a jacuzzi, a floating beach club, and more. You can keep adding amenities depending on what you desire to have in your superyacht. Some of the biggest superyachts in the world also include amenities such as a helipad and more.

Marine mortgage or leasing transactions are often used when banks and marine lenders finance superyachts. You can also offer your superyacht to chartering companies which will fetch you lucrative returns. Although you try to justify the pricing, you will often find that chartering can be cheaper without the troubles of ownership if you want to cruise the waters in style. But there is a distinct pleasure of owning your own superyacht that cannot be justified. Fractional ownership plans also share financial responsibility among a party of investors without the entire capital outlay.

Find The Best Superyachts and Boats For Sale in Miami

Are you looking to buy the superyacht of your dreams? Well, now you do not have to look because Miami International Yacht Sales are here to help. With Miami International Yacht Sales, acquiring a new superyacht for sale has never been easier. We have the best relationships with leading shipyards in Italy, the Netherlands, and worldwide to assist our client’s needs. Enjoy a streamlined process with us and purchase your new vessel at the correct price by seeking the current rates, aftermarket pricing, and competitive brands. Get your new superyacht without all the stress and complicated procedures. To learn more contact +1-305-857-8939 or mail us at [email protected] .

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The Costs of Owning a Superyacht

One of the most common question I get asked about my time working aboard superyacht is “What are the costs associated with owning a superyacht?”  Since no two superyachts are the same and since no two superyacht owners request the same from their yacht and crew, the answer is often hard to give out.

If the superyacht is moved every day from one destination to the next, your annual fuel bill might brake the million dollar mark, but if you plan on keeping it docked in front of your villa to be taken out on weekends only, then fuel costs might not be an issue.

Since the question seems to be asked a lot by those who are simply curious or those who are seriously thinking about splurging on a shinny new white boat, the people at Luxury Yacht Group, an agency that provides  creative solutions for yacht management, crew placement, sales and charter, have put together the  Luxury Yacht Operating Cost Calculator . 

Using this great tool, I decided to calculate the average costs of a 150′ superyacht with 9 crew members and a 12 week charter season. Here are the results:

Obviously, the costs of owning a superyacht vary widely on the choices you make, but one think is sure, you can significantly offset the costs by chartering it out for a minimum of 12 weeks a year. One way to stand out from the fleet of superyacht available for charter is to brand your superyacht – build a website, publish a great blog and be social. Need an example, check our MY Starfire ‘s digital success.

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How much does it cost to own a yacht?

By Rob Bowman | Posted On Oct 28, 2019 Updated On Dec 12, 2023

Since we opened our doors in 2002, United Yacht Sales has worked with thousands of boaters who hold aspirations of owning a yacht. A yacht can mean different things to different people, especially when discussing the difference between intended use such as fishing, day boating, entertaining, and long-distance cruising. Just as there are many applications for how you plan to use your boat, there are also many boat builders working to design the perfect yacht to meet a specific niche in the marketplace. With nearly 1,000 transactions completed each year, United brokers commonly hear the same questions asked as new boaters begin their research into finding the perfect vessel. The yacht's purchase cost isn't the only expense though and other factors need to be considered.

What does it cost to own a yacht? "The cost of ownership for a 60-foot, $1 million yacht is going to be about 10% of its value, or $100,000 per year if it's over ten years old," said Peter Schmidt , Founder of United Yacht Sales. "You can pretty well estimate that for a later model boat of this size, in the Florida market, your general costs are going to be in that range. This would include things like routine maintenance, repairs, dockage, additional supplies, and the cost of either a professional captain or a yacht manager. If it's a newer boat, the annual costs will be less, however preventative maintenance is still very important."

If you're new to boating and this is your first yacht purchase, it makes sense to discuss these questions with your yacht broker:

• Where do you plan to keep your yacht?
• Are you going to run the boat yourself or will you need a captain?

How much does it cost to maintain a yacht?

• How much does it cost to fuel your yacht?
• Is buying a yacht a good investment?

The answers to these questions vary with many factors influencing the cost of each. Simply the location of where you plan to keep and use your yacht can raise or lower your monthly spend to keep your boat maintained in the best possible condition.

( Seen below: The below 2009 Viking 50 is an example of a sportfishing boat recently sold for approximately $1 million. Boat prices have continued to increase since 2020 and are just now beginning to stabilize. )

How much does it cost to store a yacht at a marina?

One of the first and most important questions to answer before you buy a yacht revolves around storage. If you own a water-front home with a dock big enough to safely store your yacht, the savings are substantial. However, if you plan on keeping your vessel at a marina, those costs need to be included in your annual budget. United Yacht broker Christopher Cooke  owns his own yacht management company and often helps his clients find a space at a marina. "The cost of keeping your yacht at a marina really varies by location," said Chris. "You are charged per foot, but that cost can change not only depending on what county you're in, but also how many amenities are at the marina."

"In Florida, the marinas in Martin County for example, can be half the cost of Miami-Dade," continued Christopher. "It really all depends on your boating plans, where you live, and how far you're willing to travel to be at your boat."

Sailfish Marina of Stuart is a popular yacht storage facility in Martin county that is the closest marina to the St. Lucie Inlet also with accommodations for a 60-foot and over boat. There is a fuel dock at the marina as well as a tackle shop.  If you purchase a slip for a full year on an annual contract, the cost is $20-$22 per foot of your "Length Overall" . This is important, because while some boats might be called a "60", they may very well be 62 feet in length and cost more. Additionally, if you want electricity, water, and waste removal, it can cost you an extra $175 per month for one 50amp line.

Just 40 miles to the south, in the heart of Palm Beach County, sits Palm Harbor Marina. With over 200 slips, some of which can accommodate a 250-foot superyacht and state-of-the-art Marinetek concrete floating docks, the cost is much higher. Using the same example of a 60-foot cruising yacht, the cost of storage is approximately $5,760 per month, along with a $500 per month utilities fee. "With a place like Palm Harbor Marina, boaters are paying for the amenities and the location," continued Chris. Palm Harbor Marina features a yacht club with a hospitality bar and media center, a complete fitness center, game room, deli, concierge, as well as being right next to the best restaurants and nightlife in Palm Beach.

(Seen below: A yacht is welcomed by the professional staff that includes golf cart service. Photo credit: Palm Harbor Marina website.)

"For a yacht that's 60-feet, later model year, and with average usage, you can expect to pay $60,000 per year in preventative maintenance costs ," said Cooke. "And by average use I mean 150-200 hours per year. But that's assuming nothing goes wrong and has to be replaced. Typically you're looking at $4 per foot to have someone dive it, another $4 per foot to have it washed regularly, and then another $1,000 or so to go through and do a full systems check. These costs can definitely vary though depending on the boat and location. Because of inflation with the price of materials and labor, these costs have really gone up over the last 2 years." 

The best advice Christopher has for boat owners of this size is to hire a yacht management company. Yacht Management companies often oversee anywhere from 10 to 50 boats at any one time, Christopher currently has 30. The yacht manager will ensure the boat is clean, all systems checked like transmission and generators, the running gear checked, oil changes are done, and that nothing is starting to fail. Preventative maintenance can save thousands of dollars in the long run of yacht ownership and will end up paying for itself. Many yacht owners have work or other hobbies that take their time away from being able to devote to the proper maintaining of their vessel. The result can be negligence in the upkeep of the boat, causing systems to fail, and end in more costly repair bills. If you're going to spend the money on a nice yacht, a yacht management company is a smart choice.

How much does it cost to insure a yacht?

Joshua Giordano of Global Marine Insurance Agency is no stranger to insuring boats from New York to Florida. In fact, In fact, with over 20 years in the marine industry Joshua offers a unique understanding of marine insurance as it pertains to personal watercraft, boats, and yachts. This knowledge and experience allows him to find the best boat & yacht insurance at the best price.

"We get asked all of the time how much it costs to insure a yacht and the answer is it really depends on where you live and keep the yacht," says Joshua. "For a 60-foot yacht in the Northeast, you're looking at between $6,000 and $8,000 per year for insurance. Come down to Florida and that same boat is going to be $10,000 to $12,000 to insure assuming it's for private use only. If you plan to put your vessel into a yacht charter program in Florida, then costs go up $14,000 per year."

(Seen below: A 62' Azimut Yacht in Florida, if kept at a marina, will likely cost about $10,000 per year in insurance.)

How much does it cost to fill a yacht with fuel?

Trying to budget your annual expense for fuel can be difficult. Not only do some yachts have larger fuel capacities, but their fuel burn and range can also vary. This also then dependent upon how much you use your boat and how hard you will be running the engines. Cruising at lower rpm's at around an 8-10 knot speed can mean better fuel efficiency with longer running times between trips to get more fuel.

Assuming your 60-foot yacht has a fuel capacity 1,200 gallons and with an average fuel price of $5.50, and it will cost $6,600 to fill up. For new boaters, it's really difficult to gauge how much fuel you might use in a year and only personal experience and time on the water can help narrow down that annual cost.

Fuel costs per location also can change depending on where you are boating. The Waterway Guide offers up-to-date pricing on fuel at major marinas through the United States. For example, diesel fuel in Jacksonville, Florida is currently ranging from $5.40 to $5.90 depending on which marina you stop at. In comparison, stopping for diesel in the Florida Keys will start at $4.90 and could be as high as $5.30 per gallon.

Can you finance a yacht?

Finacing a yacht is very common," says Shana White with OceanPoint Marine Lending. "There are many attractive programs out there that can be tailored to fit the bueyer's needs. The boat loan approval process usually takes between 24 and 48 hours to receive an answer." Things like your income-to-debt ratio, credit score, credit history, and asset verification all go into whether or not a bank will loan you the money for a yacht. A favorable rate for a yacht loan could be 4% in the current market with other possible discounts available. Check out our Boat Loan FAQ's page for more information.

Is owning a yacht a good investment?

Why Are Yachts So Expensive?

Can I Sell My Yacht Without A Broker?

What To Know When Buying A Boat

What is the best sport fishing boat?

How Much Should I Pay For A Yacht?

Owning a yacht is an investment in yourself, not a financial one. Boats depreciate in value, they cost money to maintain, and you will almost never sell it for more than what you paid for it. The memories you create with your friends and family on a yacht, however, are worth more than words can describe.  Peter Schmidt talks about why to own a yacht after more than 40 years in the business, "Owning a yacht is a good thing, one of the joys of life. Don't let anyone tell you otherwise. A yacht allows you to make memories you never dreamed possible!" Peter is also a current boat owner and has owned several throughout his life. His kids now own their boats and are teaching Peter's grandchildren the joys of being on the water. "I love boating and my kids love boating. It gets in your blood and gets passed down through the generations. There simply is no greater pastime than owning a boat. Yes, there are some inconveniences along the way with repairs, but the good far outweighs any temporary inconveniences." 

Peter suggests "speaking to a knowledgeable, professional, and experienced yacht broker near you about the costs of yacht ownership. If you don't have a relationship currently with a United Yacht broker, please give our main office a call at (772) 463-3131 and we will connect you with the best broker to service you based on your location and boating needs.

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Adapt Your Strategy to Higher Interest Rates

• Scott Gillis,
• Joe Shalleck,
• Read DuPriest

To increase sales and profits in this environment, executives need to rediscover the concept of economic profit.

While many executives and investors were thrown by last year’s interest rate increases, the cost of capital needn’t be a threat. Companies that integrate the cost of capital into their strategy and planning reap real benefits. When something is cheap, people waste it. With the cost of capital back to normal levels, it’s simply irresponsible not to make it a management discipline that changes the way you do business. To do that, executives need to rediscover the concept of economic profit (EP) — that is, revenue minus not just operating and administrative costs, but also the cost of the capital needed to produce that revenue. The authors have found that executive teams that bring the disciplines of the capital market inside a corporation deliver shareholder returns more than 50% above their industry peer indexes. That staggering difference attests not just to the value created by managing with economic profit, but also to the value squandered by ignoring it.

How should businesses cope with today’s higher cost of capital? Many executives and investors were flummoxed by last year’s interest rate increases. Indeed, when our colleagues surveyed 3,100 executives about forces that had disrupted their business last year, interest rates and inflation topped the list. When the executives were asked about threats to their business in 2024, interest rates and inflation again led the list, ahead of other issues such as politics, regulation, AI, or climate change.

• SG Scott Gillis is a partner and managing director in the Corporate Strategy and Transformation Practice at AlixPartners and coauthor of Beliefs, Behaviors and Results: The Chief Executive’s Guide to Delivering Superior Shareholder Value.
• LM Lee Mergy is a partner and managing director in the Corporate Strategy and Transformation Practice at AlixPartners and coauthor of Beliefs, Behaviors and Results: The Chief Executive’s Guide to Delivering Superior Shareholder Value.
• JS Joe Shalleck is a partner and managing director in the Corporate Strategy and Transformation Practice at AlixPartners and coauthor of Beliefs, Behaviors and Results: The Chief Executive’s Guide to Delivering Superior Shareholder Value.
• RD Read DuPriest is a partner and managing director in the Corporate Strategy and Transformation Practice at AlixPartners.

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President Joe Biden signs short-term spending bill to avoid partial government shutdown

President Joe Biden arrives at the White House in Washington, Thursday, Feb. 29, 2024, after traveling to Brownsville, Texas. (AP Photo/Andrew Harnik)

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WASHINGTON (AP) — President Joe Biden on Friday signed a short-term spending measure that keeps one set of federal agencies operating through March 8 and another set through March 22 — officially staving off a partial government shutdown that would have started on Saturday.

The measure gives lawmakers some more time to draft and pass spending measures to keep the federal government operating for the current fiscal year, which ends on Sept. 30. Washington has been running on a series of short-term measures because Congress, as it routinely does, had failed to enact full-year spending bills on time.

“This bipartisan agreement prevents a damaging shutdown and allows more time for Congress to work toward full-year funding bills,” Biden said in a statement Thursday evening after both the House and Senate cleared the temporary fix. “That’s good news for the American people. But I want to be clear: this is a short-term fix—not a long-term solution.”

The House acted first on Thursday . The vote to approve the extension was 320-99. It easily cleared the two-thirds majority needed for passage. Democrats overwhelmingly voted to avert a partial shutdown. But the vote was much more divided with Republicans, 113 in support and 97 against. The Senate then took up the bill and approved it during an evening vote of 77-13.

Next week, the House and Senate are expected to take up a package of six spending bills and get them to the president before March 8. Then, lawmakers would work to fund the rest of the government by the new March 22 deadline.

Financial Optimization Tool For Contractors To Reduce Operating Costs Announced

Recession Resister has announced a new update to its bill reduction service for contractors who are concerned about overpaying for services and utilities.

Portland, United States - March 4, 2024 —

The newly updated service allows roofers, builders, painters, and other US contractors to upload photos or scanned bills, and the contract negotiation team will examine them at no cost to the client. Where savings can be made, they will pursue the best deal with providers, so clients can save money without switching their service.

More information can be found at https://recessionresister.com/

Recession Resister explains that most businesses and solo contractors across the US are overpaying for their bills without realizing it - to the tune of $60 billion every year. Many bills outpace inflation - such as the average cable bill, which has increased by 40% since 2010 - and the team can realize savings across TV, internet, mobile, satellite, electricity, and security.

Recession Resister succeeds on a performance basis, collecting 50% of the savings once successful reductions have been secured from the service provider. Within one week of receiving a bill, the negotiating team will make contact and begin working towards a reduced rate, providing detailed reporting and updates throughout the process - and the newly negotiated discounts typically take effect on the next billing cycle.

To enable full transparency, the company grants each contractor access to an online account dashboard for real-time status tracking on all submitted bills, outlining where each negotiation stands, and ensuring clients remain well-informed throughout.

For contractors concerned about historical bills, Recession Resister also provides professional auditing services. The team says around 80% of businesses have been overcharged on utilities over time - but they track down any errors, rectify mistakes, and obtain refunds for the overcharges when warranted.

Recession Resister can also help clients in deregulated energy markets to switch power providers for even more savings, working through its sister company.

A spokesperson states: “Chances are your monthly costs for services have increased consistently over time without you noticing, or that they include hidden fees, old charges that should have disappeared, or some other ‘gotcha’ that you may not even know about.”

Interested parties can learn more at https://recessionresister.com/

Contact Info: Name: Brian Richards Email: Send Email Organization: Recession Resister Address: 11923 NE Sumner St STE 687470, Portland, Oregon 97220, United States Website: https://recessionresister.com

Release ID: 89123261

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Blue Cross Blue Shield of Michigan posts 2023 operating loss amid rising drug costs

Blue Cross Blue Shield of Michigan reported an operating loss of $544 million in 2023, as the insurer experienced an increase in medical and pharmacy claims and costs, including popular medications used for weight loss and diabetes.

The insurer saw a net gain of $100 million on $36.3 billion in revenue across its companies for the calendar year ending Dec. 31, officials said Friday during the company's annual financials briefing. They attribute the gain to the company’s strong investment portfolio and profits earned by subsidiaries.

“2023 was the year during which we saw the local and national health care economy experience massive cost pressures, driven by surging demand for specialty drugs with expensive price tags,” said Andy Hetzel, vice president of corporate communications for BCBSM. “The increase in prescription drug trends is a bad recipe for healthcare affordability. We want our members to have access to therapies that improve their health and their lives, but the short-term financial impact of this trend is a significant concern because of its pressure on health insurance costs.”

BCBSM experienced an increase of $1.8 billion in pharmacy claims costs, said Joe Radtka, vice president enterprise finance and chief risk officer for the insurer.

Radtka said three GLP-1 drugs for diabetes and weight management, Mounjaro, Wegovy and Ozempic, grew by $320 million in claims across the company’s Medicare and commercial business, contributing to a total increase of $350 million for the drug class.

Specialty drug claims costs increased $750 million, with $400 million of that increase due to increased utilization of drugs for autoimmune disease, Radtka said, despite the introduction of some new biosimilar versions of these drugs.

Another new medication, the RSV vaccine, introduced in the fall, resulted in $27 million in new claims in 2023.

“When RSV vaccine costs are combined with newly assumed COVID-19 vaccine costs, total costs of both vaccines reached $50 million in 2023,” Radtka said.

The company experienced a $1.4 billion increase in claims costs for medical services, particularly in surgical procedures, hospital-administered drugs, imaging and diagnostic services, Radtka said.

Outpatient surgery costs rose by 13% due to a combination of higher costs and the intensity of procedures for cardiac care, cancer surgeries and musculoskeletal treatments, which had steadily increasing utilization rates, he said. The insurer also saw more use and a higher combination of radiology services, driving a 10% increase in costs for high-tech radiology, such as CT and MRI, as well as low tech radiology like x-rays.

“The health care economy, in Michigan and nationally, is experiencing an extreme wave of cost pressures brought on by surging utilization and skyrocketing demand for high-cost pharmaceuticals,” BCBSM president and CEO Daniel J. Loepp said in a statement Friday. “Despite these extraordinary pressures, Blue Cross retained our membership, managed a positive financial margin, and continued our dedicated efforts to promote affordable health coverage for our members in 2023.”

Officials said Loepp received total compensation of $15,762,240 in 2023, down from $16,977,696 million in 2022. This includes a base salary of $1,768,000, a bonus of $12,344,975 and other compensation of $1,649,265.

“Overall, the consistently strong performance of the company under Mr. Loepp’s leadership is reflected in his total compensation,” Hetzel said. “In 2023, he led the Blue Cross enterprise through tremendous health care cost pressures as we've been explaining and lingering uneasy economic times while the health care ecosystem was relying on us more than ever.”

Nationwide membership for BCBSM, Blue Care Network and Blue Cross Complete of Michigan was 5,204,264 at the end of 2023, up about 19,000 primarily through growth in the company’s Medicare Advantage membership.

Blue Cross Complete of Michigan membership decreased in 2023 by 21,000 due to the end of the public health emergency for COVID-19. Membership in the individual plans had a slight decrease of 3,564 for a total of 153,936 members in January 2024 following the annual open enrollment period.

BCBSM will pay $100 million to the nonprofit Michigan Health Endowment Fund, which supports grants to improve the health of Michigan residents, with emphasis on children and seniors.

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@CWilliams_DN