"[i]what would be the equivale
"what would be the equivalent diesel that would move the boat the same as the 260?
A 260HP diesel.
you are correct about torque. Your current engine has about 350 lb.ft. of torque; enough to make 260HP at around 4000rpm.
You need a diesel that has enough torque to make 260HP at a lower rpm, around 2500rpm. Diesels turn slower but make more torque. So a 260HP diesel would make about 525 lb.ft. of torque
Torque X RPM/5252=HP
Then, with the diesel outdrive's different gear ratios, your boat will have the same power and speed characteristics.
Mercruiser offered various diesels in the 250HP range. You would be best to look for a drop in Mercruiser drive package new or used. You need a marine diesel that comes with the outdrive so you have the proper gears, and the transom plate/gimbal/bellhousing/exhaust etc. etc.
would want to budget $10,000 for good used stuff. Your gasoline fuel tank is probably ok with diesel, but might want to read the tag on it.
you would have to save 4000 gallons of fuel to ever save money with the swap. Can't see that ever happening in a pleasure boat. If a charter boat or busy commercial boat might be economical.
Probably cheaper to sell what you got, and buy what you want."