Aircraft Loan Calculator

You apply to a bank, credit union or aviation lender, providing financial statements and details of the aircraft. The lender orders or reviews a valuation and logs, then advances the money with a lien on the aircraft recorded with the FAA. You repay in monthly installments. If you stop paying, the lender can repossess the aircraft and sell it to cover the balance.

Terms commonly run from 10 to 20 years, depending on the aircraft's value, age and type, as well as the lender. Some shorter loans use a balloon, with a large final payment due at the end. Longer terms lower your payment, but they increase your interest. If you plan to fly for just a few years, think about what you might still owe when you sell.

Rates change with the market and depend on your finances, the term, the loan-to-value ratio and the aircraft's age. We don't publish live rates. Get quotes from a few aviation lenders on the same day, and compare APRs. Newer aircraft and bigger down payments tend to earn better rates. See the table above for what each rate does to your payment.

Start by getting preapproved so you know your budget. Find an aircraft and agree on a price subject to a pre-buy inspection. Provide the lender with the purchase agreement, specs, logbooks and your financial documents. Order a title search and arrange insurance, which the lender will require. At closing, the lien and bill of sale are filed with the FAA.

Many aviation lenders look for scores around 700 or higher, but requirements vary. They also weigh your overall finances, including income, debt and liquid reserves, and often want evidence that you could keep paying through a slow period. Larger loans can come with stricter standards. If your score is lower, a bigger down payment could help your case.

Many lenders ask for 15% to 20%, and sometimes more for older or unusual aircraft or for first-time owners. On a $250,000 plane, 20% is $50,000, which leaves a $200,000 loan. At 8% over 15 years, that saves about $478 a month compared with financing the whole price. Keep separate cash for insurance, the first annual inspection and surprises.

Often yes, but with limits. Lenders may shorten the term, raise the rate or require a bigger down payment. A plane's condition, logs, engine time and damage history matter more than age alone. Some lenders won't touch experimental or very old aircraft, while specialists may. A thorough pre-buy inspection protects you and supports the valuation.

Yes. The math above is the same for piston singles, turboprops, jets and helicopters, though lenders vary in what they'll finance. High-value aircraft may be purchased through an LLC or a trust, and may have more complex loan structures. Helicopters can have shorter terms and higher maintenance reserves. Ask a specialist lender about the exact make and model.

Beyond the loan, you'll pay for insurance, a hangar or tie-down, annual inspections, fuel and engine and propeller reserves. In our example, $3,000 a year for insurance and $15,000 for everything else, with the plane losing 3% of its value a year, brings the true cost to about $2,391 a month against a $1,252 payment. Divide your yearly costs by your flying hours to get an hourly cost. A flying club or partnership often makes more sense if you fly only occasionally.

Yes. Rates, fees, terms, and prepayment rules are often open to discussion, particularly if you have strong finances or a larger down payment. Having several written offers gives you leverage. Ask specifically about prepayment penalties and whether the lender will allow an extra payment or a sale before the end of the term. Small terms can matter on a large loan.

It may be, if the plane is used for business, since business interest and depreciation can often be deducted, subject to rules on personal use. A personal aircraft generally doesn't qualify as a second home for the mortgage interest deduction. These rules are complex and can trigger scrutiny, so ask a tax professional who knows aviation.