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, and Fuel Prices v. Amount of use per annum vi. Age, Condition and regularity of maintenance Costs generally include crew salaries, maintenance, insurance, fuel, marina fees, technical management and refits. 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. Below we provide a rough indication of costs, but remember each yacht operates differently depending on cruising patterns, charter activity and the owner’s expectations: Yacht Size Typical Annual Running Cost 30m yacht €2m – €3m 50m yacht €4m – €6m 70m yacht €7m – €10m+ 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. Rosemont Yacht Services assists owners and family offices with financial administration and corporate oversight of yacht owning companies, helping ensure that yacht operating costs are professionally managed and reported.