Aircraft Loan Calculator
Calculate your monthly aircraft payment, total interest, and ownership costs. Whether you are buying a single-engine piston or a light jet, see exactly how your loan breaks down over time.
Aircraft Details
Loan Terms
Quick Aircraft Presets
Enter aircraft price and loan terms to see the breakdown…
Average Aircraft Loan Rates & Terms
Rates fluctuate based on credit score, aircraft age, and whether it’s a experimental or certified aircraft. Add 1-2% for experimental aircraft.
| Category | Avg Price Range | Typical Rate | Typical Term | Down Payment |
|---|---|---|---|---|
| Single Engine Piston | $30k – $150k | 6.5% – 8.5% | 15 – 20 years | 10% – 15% |
| Multi Engine Piston | $150k – $600k | 6.0% – 8.0% | 15 – 20 years | 15% – 20% |
| Turboprop | $1.5M – $5M | 5.0% – 7.0% | 15 – 20 years | 15% – 20% |
| Light Jet | $2M – $8M | 5.0% – 6.5% | 10 – 15 years | 15% – 20% |
| Mid-Size Jet | $7M – $20M | 4.5% – 6.0% | 10 – 15 years | 20% – 30% |
| Helicopter | $300k – $5M | 6.0% – 8.0% | 15 – 20 years | 15% – 20% |
How aircraft financing works
Aircraft loans are secured loans using the aircraft itself as collateral. Because aircraft are mobile assets that can depreciate or be moved across state lines, lenders often require a larger down payment than auto loans (typically 15-20%) and may place liens on the aircraft’s FAA registration through the International Registry.
The importance of a pre-buy inspection
Never buy an aircraft without an independent pre-buy inspection by a qualified A&P (Airframe and Powerplant) mechanic. This costs between $1,000 and $5,000 depending on the aircraft, but it can save you from a $50,000 mistake. Lenders will often require a pre-buy inspection and an appraisal before approving the loan.
Understanding Loan-to-Value (LTV) in aviation
Lenders look closely at the LTV ratio, which is the loan amount divided by the aircraft’s appraised value. Most aviation lenders cap LTV at 80% to 85%, meaning you must put down at least 15% to 20%. If you are buying an aircraft older than 30 years or an experimental/homebuilt, lenders may require an even lower LTV (higher down payment) to offset the higher risk of depreciation.
Taxes and sales tax traps
Aircraft sales tax is a major hidden cost. Some states charge 0% (like Oregon or Montana), while others charge up to 8% or more on multi-million dollar jets. A $5 million jet in an 8% tax state costs $400,000 in taxes alone. Many buyers use aircraft holding LLCs or utilize tax-exempt entity structures to legally defer or avoid state sales tax, which requires working with an aviation tax attorney.
Fixed vs Variable rates
Fixed rates lock in your payment for the entire term, making budgeting predictable. Variable rates (tied to Prime or SOFR) often start lower but can increase significantly over a 15 or 20 year loan term. Given the high loan amounts in aviation, even a 1% rate increase on a $2 million loan adds over $1,100 to your monthly payment. Most buyers in the current climate prefer the stability of a fixed rate.
What is an Aircraft Loan Calculator?
An aircraft loan calculator is a financial tool designed specifically for the unique terms of airplane and helicopter financing. Because aircraft loans involve much larger principal amounts, longer terms (15-30 years), and specific collateral requirements compared to car loans, standard auto calculators are not sufficient. This calculator accounts for typical aviation down payments, extended term lengths, and upfront acquisition costs like pre-buy inspections.
Why aircraft loans are different from car loans
The scale is the main difference. A $5 million turboprop financed over 20 years at 5.5% results in over $1.6 million in interest — more than many houses cost. Additionally, aircraft are depreciating assets that require expensive ongoing maintenance (hangarage, insurance, annual inspections, engine overhauls). Lenders evaluate not just your credit score, but the aircraft’s maintenance history, logbook completeness, and whether it has damage history.
How the calculation works
The calculator uses the standard amortization formula to determine your fixed monthly payment. First, it subtracts your down payment from the purchase price to find the loan principal. It then applies the monthly interest rate to this principal over the selected term to calculate the exact monthly payment. The visual bar chart shows the ratio of principal to interest over the life of the loan, helping you understand the true cost of financing.
Who this calculator is for
This tool is for private pilots buying their first aircraft, flight schools expanding their fleet, corporations establishing flight departments, and aircraft owners looking to refinance an existing loan. It is also useful for buyers comparing whether to purchase outright with cash versus financing, as the total interest cost is clearly displayed alongside the monthly payment obligation.