Kit10Phish Explains It All: How Expensive is Owning a Yacht?

A yacht that's over one-hundred feet can cost one million dollars per 3.3 feet—with a little quick math, that's over thirty-million dollars, the definition of luxury indulgence.

The running cost of this yacht can go as high as $70 million.

According to a report by UK-based broker Towergate Insurance, owners are likely to spend at least 10% of the purchase price on the yearly cost of maintaining and operating their yacht. Or $100,000 per year if it's over ten years old," said Peter Schmidt, Founder of United Yacht Sales.

Rupert Connor from Luxury Yacht Group estimates that a 150-foot superyacht will cost around $2 million a year or roughly $200,000 a week to run.

This means Azzam, (pictured above) one of the largest superyachts ever built and rumored to have cost around $605 million, might set its owner back over $60 million in maintenance and operating costs each year.

So where is all the money going?

The real cost of owning a yacht includes taxes, insurance, mooring fees, dockage fees, maintenance, capital improvement projects, outfitting costs, crew, furnishings, finishes, supplies, on and on. As you’ve seen, there’s really no upper limit. Imagine it, and some billionaire has got it on their superyacht. The thing to remember is a yacht incurs expenses year-round, while it may only be used to cruise a few months or even weeks, out of the year.

Insurance-

Joshua Giordano of Global Marine Insurance Agency has over 20 years in the marine industry and offers a unique understanding of marine insurance as it pertains to personal watercraft, boats, and yachts. "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."

Julia Skoptsova, founder of brokerage firm Smart Yachts, estimates that the cost of insuring a 50-meter (164 foot) yacht is around $73,000.

Fuel-

Trying to budget the 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.

math + math + math =

Assume a 60-foot yacht has a fuel capacity of 1,200 gallons and with an average fuel price of $5.50, and it will cost $6,600 to fill up.

But it’s also dependent upon how much the boat is used and how hard the engines are run.

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.
While going top speed means refueling more often.

For new boaters, it's really difficult to gauge how much fuel might be required in a year and only personal experience and time on the water can help narrow down that annual cost (or hiring an experienced crew–we’ll talk about that in a minute).

Annnnd, just like for cars, fuel costs vary per location. 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.

Julia Skoptsova, founder of brokerage firm Smart Yachts, estimates that fuel costs could run up to $281,000/year depending on miles traveled. The fuel bill for a large yacht traveling from the Caribbean to France might be around $70,000, says Connor.

Crew-

The most significant cost is undoubtedly the crew. A superyacht owner is likely to spend around $860,850 a year on salaries for workers onboard a 150-foot yacht.

Often, the number of crew members will be double the number of potential guests on a yacht.

Connor estimates that crew costs account for about 42% to 48% of the annual expenses for most yachts. There are also other crew costs, like medical & liability insurance, food handling certifications, training (courses on everything from fishing to wine knowledge), and uniforms.

“Without a good captain, no boat will run well. It doesn’t matter who the person sitting behind the desk claiming to be the manager is, you have to have a good captain.” Of course, this doesn’t come cheap:

An experienced captain of a vessel measuring 150 feet could earn up to $192,000 a year
A deckhand might be on a salary of $34,500

And it wouldn’t be in a yacht owner’s best interest to lowball the staff: “I’d say 99% of all problems on a yacht start with a crew member. The jury’s out on the final 1%.”

Yacht Management Companies-

Many yacht owners have work or other hobbies that take their time away from being able to devote to the proper maintenance 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. 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 preventative maintenance

Having these logistics taken care of can save thousands of dollars in the long run of yacht ownership and will end up paying for itself.

Inspections-

The price of annual inspections also needs to be taken into account, with more detailed surveys required every 2.5 and 5 years. “Some of these surveys can run into the hundreds of thousands to complete,” says Connor. “And that’s just the cost to inspect. If they find a problem the repairs can be a multiplier on that.”

Maintenance-

Routine maintenance can cost roughly 2% of the boat value after the yacht's first year, and around 7.5% of the boat's value when the yacht is 10 years old. That is not including surveys and refits.

"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.

Communications-

Think boat-to-shore communications, Very high frequency radio, inter-crew communications, satellite TV, and of course, high speed broadband. Skoptsova suggests that communication costs for a 164 foot yacht would fall just under $67,000 per year. And when I was looking at yacht features, the communications and technologies often ran into the extravagant. Again, imagine it, and it’s probably on some wealthy person’s boat.

Supplies-

This list could be endless! Consider water toys, furniture, art, medical supplies, and gym equipment, food & alcohol, entertainment, and more which can add to expenses.

Paperwork

Moving across borders is costly due to all of the paperwork involved. Here’s some documents mentioned by AI:

Mooring

Costs of typing up a boat are also pretty significant.

A small yacht (up to 30 feet) may cost anywhere from $300 to $800 per month to dock
while larger luxury yachts (over 100 feet) could see fees in the range of $3,000 to $10,000 per month or more, depending on the location and services provided.
Some of the most expensive ports, such as the marina of Capri and Marina Di Porto Cervo in Sardinia can charge up to $3,675 per day during the high season.

Customers who frequently return to the same berth can sometimes opt to pay an annual fee, which comes at a slightly lower day rate.

Dockage

Of course, superyachts are only at sea for a few months of the year. They spend the rest of the time docked at ports, which comes at a cost. Dockage costs vary depending on how big the boat is and how desirable the marina is. "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." You can lease a dock monthly or purchase a dock. Towergate Insurance estimates that docking fees for larger boats can run up to $350,000.

Example 1:

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.

Example 2:

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.

Optimal Use & Charter-

It is recommended to use the yacht up to 14 weeks a year per owner for a total of 28 weeks. Or opt to charter out the weeks you do not use it to defray the running cost.

Here is a neat calculator where different variables can be manipulated to see the operating costs of owning a yacht:

https://www.luxyachts.com/yacht-cost-calculator

I made some examples just to show a range:

Examples when every slider is set to the middle (by category):

Supply & Demand

The pandemic raised demand for boats. In fact, demand is such that asking prices for superyachts rose significantly in 2021. Figures from BOAT Pro data indicate that the combined sales for the first three months of 2021 rose 46% when compared to the same period last year.

Boats depreciate in value, they cost money to maintain, and you will almost never sell it for more than what you paid for it. Yet, there are an estimated 15,000 luxury yachts in the world today.

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. The memories you create with your friends and family on a yacht, however, are worth more than words can describe. A yacht allows you to make memories you never dreamed possible!" 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."

For Connor, their appeal is simple. A holiday onboard a superyacht provides an experience you simply can’t get anywhere else. “They [the super rich] are looking for the ultimate vacation, and yachts are unique,” he says. “We’re able to get away with it being a fairly expensive vacation because we’re delivering something they can’t get elsewhere.” “Most of these people also have two or three fabulous homes around the world. But they choose to also own a yacht, or two, or three.”

Skoptsova shares this sentiment, stressing that the high running costs are more than worth it “for the opportunity to enjoy your life on board” one of these incredible vessels. “After considering the operational cost for a jet or a helicopter flying hour, yachting expenses seem to be fair,” Skoptsova tells CNN Travel. “Jet owners have told me many times that the yacht expenses are cheap.”