Power yachts differ in design and power source from sailing yachts. As a power yacht does not have the problem of balance due to wind resistance in the sails, they have a much smaller keel. They are power by either a single or twin motor which can be fitted inboard or outboard. The engines that are fitted are either a propeller engine or a jet propulsion system and in most cases of modern boat they have switched from a petrol based fuel to a diesel, which does save on cost and environmental damage. This means that the costs are larger due to fuel consumptions and they do not have the same environmentally friendly benefit.

The classification of motor yachts is similar. There is the Day cruiser which has no cabin, the weekender which has one or two cabins and basic appliances, the cruising yacht which allows for longer periods of time to be spent on board and the luxury yacht which is designed again to the highest standards of amenities. There is a different classification which is the sport fishing yacht which is designed purely for that purpose. Due to the power yacht being controlled by a motor, these boats do not feature in any serious racing events in the same way that sailing yachts do.