How aircraft finance works
Aircraft are usually financed by specialist lenders, with the aircraft as security. Lenders look at the aircraft's type, age and maintenance history as well as your finances, and often ask for a sizeable deposit.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Worked example
A £250,000 aircraft with a £50,000 deposit means borrowing £200,000. At 8% over 15 years, the payment is £1,911.30 a month, £344,034.75 in total.
Ownership costs
Budget for insurance, hangarage or parking, maintenance and inspections, and fuel, which can add up to more than the loan payments.
Inputs for the aircraft loan calculator
Aircraft price
The price of the aircraft.
Deposit
Your deposit.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over.
CALCULATOR QUESTIONS
Aircraft loan calculator questions
Who finances aircraft?
Mainly specialist aviation lenders, usually with the aircraft as security.
How much deposit do I need?
It varies by lender and aircraft, but aircraft finance usually needs a substantial deposit.
Does the aircraft's age matter?
Yes. Lenders look at type, age and maintenance records when deciding terms.
Does this include running costs?
No. Insurance, maintenance, hangarage and fuel are extra.