How do I figure interest payments on a boat loan?
Figure Periodic RateDivide the annual interest rate by the number of payments you make per year. For example, if your boat loan has a 9.6 interest rate and you make monthly payments, you would divide 0.096 by 12 to find the periodic interest rate to be 0.008.Calculate InterestMultiply the balance of your loan by the periodic interest rate to calculate the interest payment on your boat loan. You can find the outstanding balance by checking your loan statement or contacting your lender. Finishing the example, if your boat loan balance was $6,730, you would multiply $6,730 by 0.008 to find the interest payment to be $53.84. You will have to recalculate this amount each month as the amount you owe changes as the principal you owe decreases.
