Yacht Ownership Cost Calculator

The “Hole in the Water” Calculator: Why the ‘10% Rule’ of Yachting is a Lie

There are only two happy days in a boat owner’s life: the day they buy it, and the day they sell it.

We have all heard the clichés. But for the ultra-wealthy, a superyacht is not just a boat; it is a floating corporation. It is a depreciating asset that employs staff, consumes massive amounts of fossil fuel, and pays rent in the most expensive zip codes on Earth (Monaco, St. Barts, Capri).

If you are browsing listings on Fraser or Burgess, you have likely heard the “Rule of Thumb”: expect to pay 10% of the purchase price annually in operating costs.

I am here to tell you that rule is a lie.

If you buy a massive, older yacht for a “bargain” price of $5 million, your running costs don’t magically drop to $500k. You are still paying for the crew, fuel, and dockage of a 150-foot vessel. In reality, your operating costs could be 30% or 40% of the asset value.

We built the Yacht Ownership Cost Calculator (above) to reveal the brutal math behind the luxury.

The “Marine Tax” is Real

Why does this calculator produce such high numbers? Because the marine industry operates on a markup known as the “Marine Tax.”

Need a new sofa for your house? $5,000. Need the same sofa bolted to the deck of a Sunseeker? $15,000.

Everything that touches salt water rusts, breaks, or requires certification. The calculator above breaks these costs down into the “Big Three” that drain your wallet:

1. The Crew (The biggest expense) The crew is the heartbeat of the vessel, but they are expensive. A good Captain on a 100ft+ yacht commands $120k–$180k+. An Engineer is nearly the same. Then you have chefs, stews, and deckhands. Plus, you have to feed them, insure them, and pay for their flights home.

• Check the “Crew & Ops” tab in the calculator. Notice how adding just one crew member jumps your annual burn rate by nearly $100k.

2. The Dockage Parking is not free. In the Mediterranean summer, a prime berth can cost €3,000 per night. Even “economy” docking in Florida or the Caribbean adds up to hundreds of thousands of dollars a year. The calculator adjusts this based on your selected “Luxury Tier.”

3. The Refit Risk If you buy an older yacht (10+ years), you aren’t just buying a boat; you are buying a maintenance queue. Generators fail. Teak decks need replacing ($1,000/sq meter). The calculator’s “Vessel Age” input adjusts your maintenance multiplier to account for these inevitable nightmares.

The Charter Myth

“I’ll just charter it out to cover the costs.”

This is the most common lie first-time owners tell their spouses.

Yes, charting helps. But look at the “Charter Offset” tab in the calculator. If you charter for 6 weeks at $100k/week, you gross $600k.

• Subtract 15% for the broker.
• Subtract 5% for the central agent.
• Subtract the wear and tear of strangers drinking red wine on your white carpets.

You might net $400k. If your running costs are $1.5M, you are still writing a check for $1.1M. Chartering creates contribution, not profit.

How to Use the Calculator

Step 1: Be Honest About the Price Enter the purchase price. Note that the cheaper the boat is for its size, the higher the maintenance percentage will be.

Step 2: Input the “LOA” (Length Overall) Length drives everything. Dockage is charged per foot. Crew requirements are dictated by safety regulations based on length.

Step 3: The “Burn Rate” Gauge Once you hit Calculate, look at the Gold Card labeled “Net Annual Running Cost.” If that number scares you, you are doing it right. If you look at it and shrug, congratulations—you are ready to make an offer.

The Verdict

Owning a yacht is the ultimate irrational asset. It makes zero financial sense. But looking at a sunset over the Amalfi Coast from your own aft deck? That is an ROI that a spreadsheet cannot capture.

Just make sure you know the price of admission before you step aboard. Use the calculator above to check your math.