How much will my yacht cost to operate?
Many have been heard to say that a yacht will cost 10% of its value to operate on an annual basis. This is rarely the case.
Every yacht has a diversity of operational parameters that will govern the costs incurred to run it:
i. Commercial or Private Registration
ii. Number of Crew required for Safe Operation
iii. Areas and limits of Navigation
iv. Fuel Capacity and Consumption
v. Amount of use per annum
vi. Condition and regularity of maintenance
Typically, crew costs (salaries, food, clothing, insurances) equate to between 35% and 50% of the annual operating costs of a yacht in the 40 to 60-metre range. Therefore yachts with a similar crew requirement will have similar outgoings despite their value.
Rosemont Yacht Management can analyse actual historic expenditure from a range of similar yachts to more accurately predict an operating budget.
Significant expenditure is generally incurred at 5-yearly intervals, coinciding with Classification Society Renewal Surveys, Paint Recoating and Maintenance Works. The OWNER should be aware of such fluctuations in annual operating costs from the outset and plan for them in the budgeting forecast.