How much costs a megayacht every year?

Over the last twenty years, sail and motor yacht dimensions have increased several fold. Together with size increase, management costs have also gone up.

Costs linked to on-board crew, docking fees, logistical and administrative expenses, and daily expenses such as food and fuel are directly proportional to the size of the yacht. As a yacht’s size increases, so does each expense item, and the management of the yacht becomes increasingly complicated. This helps us understand the need to rely on companies specialized in super-yacht management. But how are annual expenses divided up?

Sail and motor yachts between 35 and 40 meters, the average length present today in Italian and international ports, incur an average annual expense of apx. 1,000,000 Euros, composed of berthing, fuel (for an average of 100 hours of navigation), maintenance, dry-docking and administrative costs (permits, insurance). Based on an average crew of four to five members, 400,000 to 500,000 Euros will be dedicated to direct and indirect crew costs.

Percentage-wise, expenses can be broken up as follows:

-         30%: maintenance related directly to the yacht, it’s systems, wintering, shipping to and from the Caribbean (300.000 Euros value);

-         25%: personnel costs, including recruitment, salary determination and performance evaluation, extras (250.000 Euros value);

-         15%: owner use expenditures, related to the time the owner and guests spend aboard and relevant fuel costs (150.000 Euros value);

-         10%: logistics such as berthing reservations and chandlery supplies – included here are sea-toys such as tenders, jet-ski’s, helicopters and other leisure time expenses (100.000 Euros value);

-         10%: consumable items such as cleaning products, interior accessories and decorations (100.000 Euros value);

-          5%: administrative expenses related to flag and ship registry, management and agencies (50.000 Euros value);

-           5%: remaining expenses such as the Consierge, marketing and communication for chartering (today, the only positive item on a yacht’s balance sheet) (50.000 Euros value).

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