Introduction

Financing an airplane involves more than principal and interest. Buyers must account for sales tax, annual insurance, and other fees. A clear understanding of monthly obligations helps pilots and operators budget effectively and avoid surprises. This calculator combines all components into a single monthly payment figure, making loan planning straightforward and transparent.

How to Use

1. Enter the aircraft purchase price and your down payment amount.
2. Specify the annual interest rate and select the loan term in years.
3. Provide yearly estimates for sales tax/fees and insurance.
4. Click “Calculate Payment” to view monthly principal, interest, tax, and insurance totals.

Calculation Details

The loan balance equals the purchase price minus down payment. Monthly interest rate is annual rate divided by 12. We apply the standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n – 1]
P = loan principal, r = monthly rate, n = total months
      

Annual tax and insurance are divided by 12 and added to the base payment.

FAQs

Can I adjust term length?

Yes—select 5, 10, or 15 years. Longer terms lower monthly payments but increase total interest.

Why include tax and insurance?

These recurring costs are essential for ownership and must be budgeted monthly alongside loan payments.

Where to learn more?

For guidance on aircraft financing, visit the AOPA Financing Guide. Explore more tools at CalculatorUSAApp.com.

Disclaimer

This tool provides estimates only. Consult a qualified lender or financial advisor for personalized loan terms and conditions.