How to Use the Aircraft Loan Calculator

An Aircraft Loan Calculator is a digital tool designed to help prospective buyers estimate their monthly loan payments, total interest, and overall loan cost when financing the purchase of an aircraft.

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What Does It Do?

Whether you’re purchasing a small private plane or a mid-sized business jet, this calculator simplifies the financial aspect by allowing you to plug in key figures and instantly receive estimates on:

• Your monthly payments
• The total cost of the loan
• The total interest paid
• The loan amount after the down payment

This tool is especially useful for pilots, aviation companies, and aircraft leasing professionals evaluating the affordability of a potential aircraft purchase.

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Step-by-Step Guide to Using It

1. Enter the Aircraft Price ($):
   This is the total purchase price of the aircraft you’re considering.
2. Enter the Down Payment ($):
   The amount you’re putting up front. Most lenders require a down payment between 10–30%.
3. Enter the Annual Interest Rate (%):
   This is the yearly interest rate offered by the lender. Rates vary based on credit history, loan type, and aircraft age.
4. Enter the Loan Term (Years):
   Common aircraft loan terms range from 5 to 20 years.
5. Click “Calculate Monthly Payment”:
   Instantly see the monthly payment, total cost over the life of the loan, interest paid, and final loan amount.

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Example Scenario

• Aircraft Price: $300,000
• Down Payment: $60,000
• Interest Rate: 6%
• Loan Term: 15 years

Results:

• Loan Amount: $240,000
• Monthly Payment: ~$2,023
• Total Paid Over 15 Years: ~$364,140
• Total Interest: ~$124,140

This gives you a realistic view of what your financing will look like before you talk to lenders.

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Aircraft Loan Calculator – FAQ

Q1: What is the loan amount in the calculator?
A: The loan amount is the aircraft price minus your down payment. It’s the principal you will be financing.

Q2: Can this calculator be used for used aircraft?
A: Yes. Whether new or used, the financing structure is the same—though interest rates and loan terms may differ.

Q3: How accurate is the monthly payment estimate?
A: It’s a close approximation using the standard amortization formula. However, actual lender terms (fees, taxes, insurance) may affect final numbers.

Q4: What happens if I pay more than the monthly payment?
A: Paying extra reduces the principal faster, saving you money on interest and potentially shortening the loan term.

Q5: Why is a high down payment beneficial?
A: A larger down payment reduces the loan amount, which lowers monthly payments and total interest.

Q6: Can I change the calculator to use bi-weekly payments?
A: Not currently, but we can modify it to show bi-weekly or even lump sum repayment options if needed. Let me know!

Q7: Does the calculator include maintenance or insurance costs?
A: No. This calculator only estimates financing. Ongoing costs like hangar fees, maintenance, and insurance should be calculated separately.