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A $20,000,000 motor yacht, 45m, built 2018, currently lying in Antibes, with 11 crew, summers in the Mediterranean and winters in the Caribbean, costs the owner $1.85M a year to run. Crew $760,000. Dockage $215,000. Fuel $235,000. Insurance $310,000. Refit reserve $200,000. Management $130,000. Communications, technical, parts, sundries, the rest. That is the actual line-by-line for one boat we know in detail. On a $20M asset, $1.85M is 9.25 percent. The 10 percent rule of thumb is approximately right.
This page itemises every operating line we have ever seen on owner profit-and-loss statements across yachts from 30m to 90m. We name the costs that surprise first-time owners, the lines that can be reduced, and the ones that cannot. By the time a buyer signs a memorandum of agreement on a $20M yacht, the operating math should not contain a single surprise.
The 10 percent rule, validated
The standard yacht-industry rule of thumb is that annual operating costs run 10 percent of purchase price. We have validated this against 18 owner P&L statements from 2022 to 2025 across yachts from $4M to $85M purchase price. The result:
- 30m to 35m, $4M to $8M purchase: annual running 9 to 13 percent
- 35m to 45m, $8M to $25M purchase: annual running 8 to 11 percent
- 45m to 60m, $25M to $60M purchase: annual running 8 to 10 percent
- 60m+, $60M+: annual running 7 to 10 percent
The percentage drops slightly with size because some fixed costs (management retainer, regulatory load) scale sub-linearly with yacht value. The 10 percent rule overstates by about 1 to 2 percentage points on the largest yachts and understates by 1 to 3 percentage points on the smallest yachts under $5M.
The seven cost categories
Every yacht running cost falls into seven categories.
Crew. Always the largest line, usually 35 to 45 percent of annual running cost.
Dockage. Berthing in summer and winter bases plus transit nights.
Fuel. Variable with usage, but with a fixed minimum for generators and station-keeping even when not cruising.
Maintenance and refit reserve. Annual maintenance plus accrued reserve toward the major 5-year and 10-year refits.
Insurance. Hull and machinery, P&I, crew medical, plus war and political risk on larger yachts in some itineraries.
Management. External management company fees plus accounting, regulatory, and flag-state administration.
Sundries. Tenders fuel, water toys maintenance, communications subscriptions, owner consumables, owner-trip flights and logistics.
Crew, line by line
Crew is the largest variable in yacht ownership and the one most often underestimated by first-time owners.
A 45m motor yacht typically runs 9 to 11 crew. A 60m yacht runs 12 to 16. An 80m yacht runs 18 to 24. The senior officers (captain, chief engineer, chief stew, chef) command the largest salaries. The cabin crew, deck crew, and junior engineering rotate at lower rates.
Indicative annual salary bands as of April 2026, fully loaded with benefits and rotation (rotation requires 1.4 to 1.7 crew for every full-time-equivalent position because most senior crew work 2-on, 2-off):
| Position | Salary range | With rotation load |
|---|---|---|
| Captain (50m motor) | $180K to $260K | $260K to $375K |
| Chief engineer | $130K to $190K | $185K to $275K |
| Chief stewardess | $90K to $130K | $130K to $185K |
| Chef (head) | $90K to $140K | $130K to $200K |
| First officer | $80K to $115K | $115K to $165K |
| Bosun | $70K to $95K | $100K to $135K |
| Stewardess | $48K to $70K | $68K to $100K |
| Deckhand | $45K to $65K | $64K to $93K |
| Junior engineer | $65K to $90K | $93K to $130K |
Add 12 to 18 percent on top for crew food, uniform, training, medical, and travel between rotation.
A typical fully crewed 45m motor yacht therefore runs $720,000 to $920,000 a year in total crew cost. The figure climbs steeply with yacht size. A 70m yacht with 18 crew runs $1.6M to $2.2M a year. An 85m yacht with 22 to 26 crew runs $2.5M to $3.5M.
Dockage, by base
Annual dockage on a yacht with a Mediterranean summer and Caribbean winter base depends on three things: yacht size, choice of base, and whether the owner negotiates an annual berth or pays nightly.
Mediterranean summer bases. A 45 to 50m yacht typically wants an annual berth contract in Antibes, Cannes, Port Vauban, Port Camille Rayet, Olbia, Palma, or Mallorca's Puerto Portals. Annual contracts run $80,000 to $180,000 depending on base. Nightly equivalents in peak run $600 to $2,500. Premium nights (Monaco Grand Prix week, Cannes Yachting Festival) can run $4,000 to $9,000 nightly.
Caribbean winter bases. Annual berths in Antigua (Falmouth Harbour, Nelson's Dockyard), St Maarten (Simpson Bay), or St Thomas (Yacht Haven) run $40,000 to $100,000. Nightly equivalents are lower than Mediterranean and most yachts anchor most nights in the Caribbean.
Transit nights. A yacht working two seasons crosses the Atlantic twice and visits 15 to 25 transit ports in a typical year. Transit dockage runs $30,000 to $80,000.
Total annual dockage for a 45m motor yacht runs $150,000 to $300,000. For a 70m yacht $250,000 to $500,000.
Fuel, by usage profile
Annual fuel cost depends entirely on usage profile.
Low-usage profile (6 to 8 weeks of owner use, no charter, mostly at base): $80,000 to $150,000 fuel for a 45m motor yacht. Generators alone burn $30,000 to $50,000 a year.
Medium-usage profile (8 to 10 weeks owner use, 8 to 12 weeks charter): $200,000 to $350,000 for a 45m motor yacht.
High-usage profile (10 to 14 weeks owner use, 14 to 18 weeks charter): $350,000 to $550,000 for a 45m motor yacht.
Charter weeks generate fuel income through the APA float (charter clients pay fuel during charter weeks), so the net fuel cost to the owner correlates with owner-use weeks and base-station idle weeks rather than charter weeks. Charter fuel is paid by the charter client.
Maintenance and refit reserve
The annual maintenance line covers running maintenance (engine servicing, paint touch-up, electronics upkeep, hydraulics) and a reserve toward the major refits.
A 45m motor yacht runs $200,000 to $400,000 in annual maintenance. The 5-year refit (typically dry-dock, paint, hull anodes, machinery inspection, major plumbing or HVAC work) runs $800,000 to $2,000,000 lumped. The 10-year refit (major mechanical overhaul, possible interior refresh, regulatory compliance update) runs $2,500,000 to $7,000,000.
Most owners accrue a maintenance and refit reserve of 1.5 to 3 percent of yacht value annually. On a $20M yacht that is $300,000 to $600,000 per year. Owners who skip this reserve face a step-cost shock at year 5 and again at year 10. The yachts that come to market with "deferred maintenance" usually had owners who skipped the reserve.
Insurance
Hull and machinery insurance runs 1.0 to 1.5 percent of insured value annually for a yacht with strong loss record and a Class-1 captain. Bad-history yachts (recent claims, complex itinerary, junior captain) can run 2.0 to 2.5 percent.
P&I cover runs $40,000 to $120,000 for yachts up to 60m, more for larger yachts. Crew medical and welfare insurance runs $25,000 to $80,000 depending on crew count.
Total insurance on a $20M yacht runs $280,000 to $460,000 a year. On a $50M yacht $700,000 to $1.0M.
Some itineraries (war-risk zones, hurricane-zone summer cover, Antarctic) carry insurance surcharges. Most charter itineraries do not.
Management
External yacht management companies handle technical maintenance, crew employment, payroll, regulatory compliance, flag-state administration, accounting, and (sometimes) charter marketing.
Three management models exist.
Full management retainer. $80,000 to $400,000 a year, fixed fee, covering all administrative functions. Common on yachts in the 30 to 50m range with single-yacht owners.
Percentage of operating budget. 2 to 4 percent of annual operating cost. Common on yachts above 60m with complex operations.
Owner self-management with consultancy. $20,000 to $80,000 a year in advisory fees. Owner runs the operation directly, with occasional outside consultancy. Rare in practice. Most owners discover within 18 months that the time cost of self-management exceeds the financial cost of outsourcing.
The strongest yacht management firms include Camper and Nicholsons Management, Y.CO, Hill Robinson, Edmiston Management, and a handful of independents. We will publish broker-review-style assessments of each in the yacht management companies guide.
Sundries
Communications subscriptions (Starlink Maritime, VSAT backup) run $25,000 to $80,000 a year. Tender fuel, water toys maintenance, owner trip flights and logistics, and miscellaneous owner-consumables add $50,000 to $150,000.
Total annual operating cost, three benchmark yachts
| Yacht | Purchase price | Crew | Dockage | Fuel | Maint/Refit | Insurance | Management | Sundries | Total | % of purchase |
|---|---|---|---|---|---|---|---|---|---|---|
| 35m motor, 6 crew | $7M | $450K | $90K | $90K | $130K | $115K | $85K | $35K | $995K | 14.2% |
| 45m motor, 11 crew | $20M | $800K | $215K | $235K | $310K | $310K | $130K | $75K | $2.07M | 10.4% |
| 70m motor, 18 crew | $80M | $1.8M | $400K | $560K | $1.2M | $1.0M | $400K | $200K | $5.56M | 6.9% |
Numbers as of April 2026, assuming Mediterranean summer / Caribbean winter rotation, full crew at sea-going strength, no major refit year, no insurance claim. The 35m skews high because crew and management costs do not scale linearly. The 70m benefits from spreading fixed costs over a larger asset.
What chartering does and does not cover
A 45m yacht with 10 weeks of commercial charter at $180,000 weekly base generates $1.8M gross charter revenue. Of that:
- Central agent commission: 15 percent ($270K)
- Crew gratuity (not owner-revenue): 12 percent ($216K)
- Direct charter-week operating cost (fuel, food, dockage from APA — neutral)
- Owner net charter income: approximately $1.2M
Against an annual operating cost of $2.07M, the charter income covers 58 percent of operating cost. The owner still pays $870K out of pocket. Plus depreciation. Plus the cost of capital. Charter does not pay for the yacht. Charter offsets a meaningful portion of operating cost.
What we tell first-time buyers
Three things.
The 10 percent rule is a planning number, not a budget. Build the actual line-by-line for the specific yacht and the specific usage pattern. The 10 percent rule will be approximately right but the actual number can swing $300K either side.
Crew is the single biggest variable. A captain who has been on the boat 3 years saves the owner more money than any other single decision. Crew turnover is expensive: recruiting, training, transition gaps, mistakes.
The refit reserve is not optional. Owners who skip the annual reserve do not save money. They defer cost, then pay it as a step shock in year 5. The yachts that come to brokerage with "deferred maintenance" are 15 to 25 percent harder to sell.
Next steps
For the purchase math, read Yacht purchase cost 30m, Yacht purchase cost 50m, and Yacht purchase cost 80m. For the refit and insurance line detail, read Yacht refit costs and Yacht insurance costs. For the operational side, read Yacht management companies and Yacht crew hiring. For the charter-offset math from the broker side, read How to buy a yacht.