Quick Overview
Before diving into yacht ownership, it's important to understand the full scope of expenses beyond the initial purchase. Annual operating and maintenance costs are significant, and shared ownership can be a practical solution.
Owning a yacht involves ongoing costs, even when the yacht isn’t in use. These include taxes, insurance, mooring fees, crew salaries, and regular maintenance. Shared ownership offers a chance to enjoy yacht life while reducing expenses.
For a $10-million yacht, typical annual operating costs—including crew, dockage, fuel, and maintenance—range between 10-15% of the yacht’s purchase price, or about $1-1.5 million. Crew size and dockage expenses increase with larger yachts.
Routine maintenance starts at around 2% of the yacht’s value in its first year and rises to about 7.5% by year 10, excluding costs for surveys and refits. Additional costs include insurance, communications, and administrative fees.
One cost-saving alternative is shared ownership. Splitting the yacht’s purchase and yearly expenses with another owner can reduce costs and allow each party up to 14 weeks of yacht use per year. Owners can also offset expenses by chartering the yacht during unused periods.
How Much Does a Yacht Cost?
Yacht prices vary greatly depending on size, brand, condition, and market demand. Generally, the larger the yacht, the higher the price.
Here’s a rough price guide for yachts:
- Yachts under 50 feet (15m): $500,000 – $2.5 million
- Yachts 50-70 feet (15-21m): $2 million – $6 million
- Yachts 70-100 feet (20-30m): $6 million – $20 million
- Superyachts over 100 feet (30m): Starting at $10 million
Keep in mind that there are exceptions, with prices varying based on several factors including age, reputation, and the urgency of the sale.
Hidden Costs of Yacht Ownership
The true cost of owning a yacht goes well beyond the purchase price. The initial price may seem reasonable, but many additional, often overlooked, expenses add up, and most of them are recurring.
Here are some key expenses to keep in mind:
- Fuel: Costs vary depending on the yacht’s size, fuel consumption, and travel distances.
- Mooring Fees: Dependent on the yacht’s size and location.
- Crew: Costs for crew depend on the number of crew members and the frequency of service.
- Communication Costs
- Food and Beverages Provisions
- Leisure and Activity Expenses
Maintenance Costs: These are ongoing, even when the yacht isn’t in use. Maintenance depends on the yacht’s size, type (motor or sail), and age. It includes regular upkeep of engines, safety equipment, hull cleaning, and occasional repairs.
Other often-overlooked costs include:
- Taxes and Insurance Premiums: Yacht insurance typically costs 0.8% to 1.2% of the yacht’s purchase price.
- Harbor and Winterization Fees: Docking fees can be substantial, and “dry docking” or storing the yacht during the off-season adds handling, transport, and storage costs.
- Depreciation: Like cars, yachts depreciate in value. The average yacht depreciates around 10% in its first year and about 7% annually thereafter. By year five, depreciation slows, but operating costs increase.
Estimating Annual Operating Costs
On average, the annual cost of owning and maintaining a yacht is about 10-25% of its purchase price. Larger yachts incur higher costs.
- For a 60-foot (18m) yacht costing $1 million or less, expect annual costs around 10% of the yacht’s value (up to $100,000).
- For a 100-foot (30m) yacht costing $10 million or more, expect annual costs around 20% of the yacht’s value (around $2 million or more).
These expenses include maintenance, mooring fees, crew salaries, insurance, taxes, fuel, cleaning, and depreciation.
Cost-Reducing Strategies
Don’t worry—there are several ways to reduce yacht ownership costs without sacrificing the experience. Keep reading to learn how you can make yacht ownership more affordable while still enjoying the luxury and freedom of life on the water.
