Airplane Finance Calculator
Airplane Finance Calculator
Enter loan details to calculate payments for your aircraft.
Estimate Your Aircraft Loan Payments
Buying a plane is a significant investment, and understanding your monthly financial obligation is the first step. Our Airplane Finance Calculator helps pilots and investors estimate monthly payments, total interest, and the lifetime cost of an aircraft loan.
Aircraft Financing vs. Auto Loans
While similar in concept, airplane loans differ in several ways:
- Longer Terms: Because aircraft depreciate slower than cars (and sometimes appreciate), lenders offer terms up to 20 years.
- Higher Amounts: Loan amounts are significantly higher, requiring stricter credit checks and liquidity verification.
- Down Payments: Expect to put down 15-20% minimum to secure a good rate.
Tips for Financing an Airplane
Before applying, ensure your logbooks are in order and consider a pre-buy inspection. Lenders will value the aircraft based on its airframe hours, engine time since overhaul (TSOH), and avionics upgrades. Use this calculator to experiment with different down payment amounts to see how they impact your monthly cash flow.
Frequently Asked Questions
What is a typical term for airplane financing?
Aircraft loans often have longer terms than car loans. Terms typically range from 10 to 20 years, depending on the age and value of the aircraft.
How much down payment is required for an airplane?
Lenders usually require a down payment of 15% to 20% of the aircraft's purchase price.
Can I include engine overhaul reserves in the loan?
Some lenders may allow you to finance improvements or avionics upgrades, but operating costs and reserves are typically paid out of pocket.
What is a typical interest rate for airplane loans?
Interest rates for aircraft fluctuate with the prime rate but are generally slightly higher than mortgage rates and lower than unsecured personal loans. Excellent credit is required for the best rates.
How long can I finance a plane for?
For newer aircraft, terms of up to 20 years are common. Older aircraft might be limited to 10 or 15-year terms.
Does this calculator include insurance and hangar fees?
No, this calculator only estimates the principal and interest payment on the loan itself. You should budget separately for hangar, insurance, fuel, and maintenance.