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There are two different classes of yachts: sailing and power boats. With the rise of the steamboat and other types of powerboat, sailing vessels in general came to be perceived as luxury, or recreational vessels. Later the term came to encompass large motor boats for primarily private pleasure purposes as well.

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sailing yacht is a leisure craft that uses sails as its primary means of propulsion. Sailing yachts are actively used in sport. Many "pure" sailing yachts are also equipped with a low-power internal-combustion engine for use in conditions of calm and when entering or leaving difficult anchorages.

Motor yachts typically have one or two internal combustion engines that burn diesel fuel or gasoline. Depending on engine size, fuel costs may make motor yachts more expensive to operate than sailing yachts.

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