Airplane Loan Calculator

How to Use the Airplane Loan Calculator

Welcome to the Airplane Loan Calculator. This tool is designed to help you estimate the cost of owning an airplane by calculating loan payments, total costs, and other related expenses. Follow the step-by-step guide below to maximize the utility of this calculator.

Step 1: Enter the Aircraft Purchase Price

Begin by entering the aircraft purchase price in the Aircraft Purchase Price ($) field. This is the total price of the airplane you intend to purchase. Ensure that the amount entered is between $10,000 and $100,000,000, as per the calculator’s requirement.

Step 2: Specify Your Down Payment

Enter the amount you plan to pay upfront as a down payment in the Down Payment ($) field. The minimum amount you can enter is $0.

Step 3: Select Your Loan Term

Choose the length of time over which you will repay the loan in the Loan Term field. You have four options to choose from:

• 5 Years
• 10 Years
• 15 Years
• 20 Years

Step 4: Input the Annual Interest Rate

Enter the annual interest rate (in percentage) in the Annual Interest Rate (%) field. This rate determines the cost of borrowing money over time. Acceptable values range from 0.01% to 30%, with a precision of two decimal places.

Step 5: Add Annual Insurance Cost

Provide the annual cost of insurance in the Annual Insurance Cost ($) field. Enter the amount that properly reflects your insurance expense, with a minimum value of $0.

Step 6: Factor in Maintenance Costs

Include the annual maintenance cost in the Annual Maintenance Cost ($) field. This captures the costs associated with upkeep and repairs. Ensure the amount you enter is not less than $0.

Step 7: Enter Monthly Hangar Cost

Input the monthly cost of storing your aircraft in the Monthly Hangar Cost ($) field. This determines how much you will spend each month on hangar fees, with a minimum value of $0.

Step 8: Analyze the Results

Upon entering all necessary details, the calculator will provide the following results:

• Loan Amount: Calculated as the difference between the aircraft price and the down payment.
• Monthly Loan Payment: The required monthly payment to repay the loan over your selected term.
• Total Monthly Cost: A sum of the monthly loan payment, monthly insurance, maintenance, and hangar costs.
• Total Interest Paid: The total interest paid over the life of the loan.
• Total Cost of Ownership: The comprehensive cost of owning the airplane, including the purchase price, interest, insurance, maintenance, and hangar fees.
• Annual Cost: The total yearly cost, capturing all ownership expenses incurred on a monthly basis.

With these results, you can thoroughly evaluate the financial implications of purchasing and owning an airplane. Adjust input fields as needed to see how changes affect your financial commitments and make informed decisions accordingly.