How to use the aircraft loan calculator

Enter the negotiated or expected aircraft purchase price, then choose the portion you plan to contribute as a down payment. The calculator subtracts that equity to estimate the principal financed.

Next, enter an illustrative annual interest rate and the number of years used to amortize the loan. If the expected maturity is shorter than the amortization, enter the maturity in “balloon due after.” The tool estimates the balance still outstanding at that point.

Understanding the calculator results

Estimated monthly payment

This is the principal-and-interest payment produced by the selected amortization. Aircraft debt service is only one part of the cash requirement. Add fixed and variable aircraft ownership costs before judging affordability.

Estimated amount financed

The estimate equals purchase price minus the entered down payment. A real loan amount may be lower if the lender’s supported value is below the purchase price, the aircraft is outside policy, or transaction costs are not eligible. Model that value sensitivity with Radar’s aircraft valuation projection tool.

Estimated balloon balance

When maturity arrives before the end of amortization, principal remains. A seven-year maturity with a fifteen-year amortization, for example, produces lower scheduled payments than a seven-year full amortization but leaves a balance that must be resolved.

Interest paid before balloon

This shows modeled interest through the balloon date. It does not include interest after that date, default interest, fees, taxes, or the cost of refinancing.

Why a payment is not the whole aircraft budget

Debt service can look manageable while ownership remains underfunded. A complete budget also considers:

• Sales or use tax and closing costs.
• Insurance premiums and deductibles.
• Hangar, management, crew, training, subscriptions, and connectivity.
• Fuel, handling, navigation, landing, and away-from-base expenses.
• Scheduled inspections and calendar items.
• Engine, APU, propeller, landing gear, and component reserves.
• Unscheduled maintenance and aircraft-on-ground exposure.
• Avionics, cabin, paint, modification, and compliance projects.
• Depreciation and the opportunity cost of equity.

Model the aircraft under realistic annual utilization. Low annual hours can make the cost per flight hour appear much higher because fixed costs are spread across fewer hours.

How lenders decide the actual amount financed

The calculator begins with price. Lenders begin with credit and collateral. They may consider:

• The lower of purchase price and accepted value.
• Aircraft age, model, market depth, use, and location.
• Borrower liquidity, leverage, repayment capacity, and experience.
• Down payment and guarantor support.
• Maintenance status and near-term capital events.
• Damage, repairs, modifications, and configuration.
• Completeness of the maintenance records.
• Registration, title, lien, and insurance evidence.

Read the full aircraft financing guide for the documents and diligence workstreams behind approval.

Comparing two loan offers

Do not compare only the headline rate or monthly payment. Normalize each offer across:

• Amount financed and required equity.
• Fixed or floating rate.
• Amortization and maturity.
• Balloon balance at maturity.
• Origination, documentation, appraisal, legal, escrow, and title costs.
• Deposit and commitment requirements.
• Prepayment penalties or breakage costs.
• Reporting, insurance, maintenance, location, and use covenants.
• Personal or corporate guarantees.
• Conditions that allow the lender to revalue or require a paydown.

An offer with a lower payment can carry a larger balloon, more restrictive covenants, or higher total cost.

The records effect on the loan model

A calculator assumes the aircraft supports the entered price. Records diligence tests that assumption.

An incomplete life-limited-part history, unresolved damage reference, missing major-alteration approval, or near-term engine event can change supported value and required equity. The right sequence is to model the transaction, inspect the aircraft, review its records, and then update the financing case with the evidence.

Radar’s pre-buy records review guide explains what to examine before a lender or buyer relies on the maintenance story.

A practical affordability stress test

Run more than one scenario:

1. Increase the interest rate and confirm the payment still fits.
2. Reduce the supported value and calculate the additional equity required.
3. Move a major maintenance event into the first ownership year.
4. Reduce annual utilization without reducing fixed costs.
5. Add an unscheduled-maintenance reserve.
6. Model the balloon as cash due, not as an automatic refinance.

Calculator assumptions and limitations

The tool uses monthly, level principal-and-interest payments. It assumes the rate remains constant, payments are made on time, and no additional principal is advanced or prepaid. Actual loan documents may use different day-count conventions, payment frequencies, floating-rate resets, fees, deposits, or principal schedules.

Radar is not a lender, broker, tax advisor, or law firm. Use the estimate to prepare questions, then obtain transaction-specific advice and written terms.

Sources and further reading

• Federal Reserve Bank of St. Louis: Bank Prime Loan Rate
• Federal Reserve Bank of New York: Reference Rates
• AOPA Aviation Finance: Aircraft financing resources