Aircraft Loan Calculator

Aircraft financing is a specialized corner of lending. A small group of dedicated aviation lenders underwrite these loans; they require substantial down payments, and the structures often differ from consumer auto loans, including longer amortizations paired with balloon payments on larger aircraft.

Before you commit, check how this payment affects your debt-to-income ratio.

This calculator amortizes an aircraft loan, totals the interest, and charts the aircraft's value against your balance. Unlike most vehicles, some well-maintained aircraft hold value remarkably well, so the depreciation rate is worth setting carefully.

How does this calculator work?

Enter the aircraft's price and the amount you're financing. Aviation lenders typically require 15–20% down or more, so your equity is usually larger than on other vehicle loans.

Set the term and APR. Aircraft loans commonly amortize over 10–20 years, sometimes with a balloon payment that refinances or pays off the remaining balance at the end. Solve for any field by entering a target payment.

Add an extra monthly payment to reduce interest and principal faster.

Set a depreciation rate. Many aircraft depreciate slowly, and some appreciate, so don't assume the steep curves used for cars and boats.

Worked example

Take a $200,000 single-engine aircraft with 20% down ($40,000), financing $160,000 at 7% APR over 15 years.

Purchase price

$200,000

Down payment (20%)

$40,000

Amount financed

$160,000

Term / APR

15 yrs / 7%

Monthly payment

$1,438.13

Total interest

$98,863

How the numbers work

The $1,438.13 payment is the amortization result for $160,000 at 7% (about 0.583% per month) over 180 months.

The first month's interest is $160,000 × 0.583% = $933.33, leaving $504.79 for principal. Over time the fixed payment tilts steadily toward principal as the balance falls.

Across all 180 payments you repay $258,863: the $160,000 borrowed plus $98,863 in interest. Unlike a depreciating car, an aircraft that holds its value changes the equity picture dramatically, since the asset isn't falling away beneath the loan.

The interest over 15 years comes to nearly $99,000. Because many aircraft depreciate slowly, and some appreciate with maintenance and market demand, the equity picture can be far healthier than the value chart's default curve suggests. Set the depreciation rate near zero for a type that holds value.

Owners should also budget beyond the loan: engine overhaul reserves, annual inspections, insurance, and hangar costs often rival the payment itself.

Down payments, balloons, and reserves

Aviation lenders treat aircraft as specialized collateral, so they require larger down payments, commonly 15 to 20% and more for older or experimental aircraft. Larger loans are sometimes written as a long amortization with a balloon: the payment is calculated as if over, say, 20 years, but the full balance comes due in 7 to 10 years, at which point owners refinance or sell.

Sound ownership planning looks past the loan payment. Set aside reserves for the eventual engine overhaul (a major expense quoted per flight hour), annual inspections, and insurance. These recurring costs are part of the true cost of ownership even though they sit outside the amortization schedule.

Is aircraft loan interest deductible?

For purely personal use, aircraft loan interest generally isn't deductible. If the aircraft is used in a trade or business, some of the interest and operating costs may be deductible, but business-use aircraft are subject to complex IRS rules on personal-use allocation and recordkeeping. Consult an aviation-savvy tax professional before relying on any deduction.