Rates vary significantly based on your credit profile, aircraft age and type, loan‑to‑value (LTV), and current market conditions. Typically, rates range from 4% to 10%, though this depends heavily on lender programs and economic conditions. For the most current rates available in 2025, check our Aircraft Loan Rates in 2025 guide. Use our calculator to model different rate scenarios and see how they impact your monthly payment. For personalized rate quotes, contact Jaken Aviation directly.

Down payments commonly range from 10%–25% depending on the aircraft type, age, and your creditworthiness. The calculator lets you experiment with both percentage and dollar amounts to see how different down payment levels affect your monthly payment and overall financing costs. For a detailed exploration of down payment strategies, see our Aircraft Loan Down Payment Requirements article. First-time buyers should review our First-Time Buyer's Guide for approval tips.

Yes, most lenders allow you to finance sales/use tax and origination fees into the principal. This reduces upfront cash requirements at closing. Use the calculator's toggle options for "Finance taxes in the loan" and "Finance fees in the loan" to compare financing versus paying these amounts upfront. The results will show you the impact on your monthly payment and total interest paid over the loan term.

A balloon payment is a lump‑sum amount due at the end of your loan term. It can significantly lower your periodic payments but increases the amount owed at payoff. Balloons work well if you plan to trade in or sell the aircraft at term end. For a comprehensive analysis, read our Balloon Payments in Aircraft Loans guide. The calculator supports both fixed-dollar and percentage balloons, so you can model the impact on your specific scenario.

APR (nominal rate) is converted to an effective rate based on your compounding frequency (monthly, quarterly, semi-annual, or annual). Your payment frequency (how often you pay: monthly, quarterly, etc.) further affects the per-period rate and payment size. Annual compounding is most common in aircraft financing. The calculator shows you the effective rate and lets you compare different scenarios to find the best fit for your cash flow.

Absolutely. Extra principal payments reduce the outstanding balance faster, which typically shortens your effective loan term and significantly lowers total interest paid. The calculator's "Extra Payment Per Period" field lets you model any additional payments, and you can export the full amortization schedule as CSV to see the impact month by month. This is a powerful strategy for reducing your financing costs.

An amortization schedule is a period-by-period breakdown showing your payment amount, principal reduction, interest charged, and remaining balance. It matters because it reveals how much of each payment goes toward interest versus principal. Early payments are often heavily weighted toward interest. Our calculator generates a complete amortization schedule that you can view and export as CSV for detailed analysis or loan comparison.

Aircraft type significantly impacts financing availability and terms. Newer jets typically have better rates and terms than vintage pistons. Turboprops and helicopters fall in between. For type-specific financing guidance, explore our aircraft financing guides on Private Jet vs Turboprop Financing and other aircraft-specific articles. Different lenders specialize in different aircraft categories, so working with an advisor familiar with your aircraft type is valuable.

Loan-to-Value (LTV) is the loan amount divided by the aircraft's market value, expressed as a percentage. Lenders typically prefer lower LTVs (50-70%) because it reduces their risk if the aircraft must be repossessed and sold. Your LTV impacts your interest rate, approval odds, and required down payment. The calculator automatically computes your LTV in the Results section, helping you understand lender requirements.

Strong credit, a reasonable LTV, a clear business plan for the aircraft, and proof of income all improve approval odds. First-time buyers should especially focus on these fundamentals. For a detailed roadmap, read our How to Improve Your Aircraft Financing Approval Odds guide. Lenders want to see that you can safely operate and service the aircraft—not just afford the payment.

Primary costs include sales/use tax (varies by state, often 6-9%), documentation fees ($500-$1,500), title and registration fees, and possibly broker or closing fees. Some states have lower or zero sales tax on aircraft. Use the calculator's state quick-fill dropdown to see how taxes vary by location, and you can adjust the tax base to match your state's rules. Review our state-specific tax guides for more details.

Yes, refinancing is possible if interest rates drop or your credit improves. Refinancing can lower your payment, reduce total interest, or shorten your loan term. The calculator helps you model refinance scenarios by adjusting the principal, rate, and term. For a deep dive into refinancing strategy, see our Aircraft Refinancing Guide. Contact Jaken Aviation to discuss current refinance programs.

Section 179 of the tax code allows eligible business owners to deduct the full or partial cost of certain depreciable property in the year it's placed in service, rather than spreading deductions across multiple years. For business-use aircraft, this can generate substantial first-year tax savings. The calculator's Tax & Depreciation section estimates Section 179 impact, though you should consult a tax professional for your specific situation. Eligibility and limits vary.

Bonus depreciation allows businesses to immediately deduct a percentage of qualifying asset costs (typically 60-100% depending on the year). For business-use aircraft, bonus depreciation can accelerate tax deductions and improve cash flow. The calculator lets you model bonus depreciation percentages to estimate potential tax savings in Year 1. Availability and percentages change with tax law, so consult a tax advisor for the current rules.

MACRS (Modified Accelerated Cost Recovery System) is the IRS-prescribed method for depreciating business property over a fixed schedule. Aircraft typically use a 5-year or 7-year MACRS schedule depending on type. Year 1 MACRS percentages are entered in the calculator's Tax & Depreciation section. MACRS allows you to deduct a larger percentage in early years and gradually less in later years, improving early-year cash flow.

The aircraft cost itself is not immediately deductible, but depreciation (Section 179, bonus, MACRS) and business operating costs (fuel, maintenance, insurance) are deductible for business-use aircraft. Financing interest is also deductible. Personal-use aircraft do not qualify for these deductions. The calculator's Tax & Depreciation section estimates potential deductions; however, tax deductibility depends on your specific situation and IRS regulations, so consult a qualified tax professional.

The IRS requires documented business use (typically 50%+ for some deductions, higher percentages for others) to claim depreciation and interest deductions. The calculator's "Business Use %" field lets you model different business-use percentages and see the estimated tax impact. Personal or non-business use does not qualify for tax deductions. Keep detailed flight logs to prove business use to the IRS.

Fixed-rate loans maintain the same interest rate throughout the term, making payments predictable. Adjustable-rate loans start with a lower rate that adjusts periodically based on a market index. Fixed rates offer stability (useful for budgeting), while adjustable rates offer lower initial payments. Most aircraft loans are fixed-rate. The calculator assumes a fixed rate, which is the industry standard for aircraft financing.

Typical approval timelines range from 5-15 business days, depending on lender requirements, documentation completeness, and complexity. Some lenders offer expedited approval (3-5 days) for straightforward applications. Having strong credit, a clear business plan, maintenance records, and proof of income speeds the process. Work closely with your lender's approval team and have all documentation ready upfront.

Most aircraft loans permit early repayment without prepayment penalties. Paying off early saves you substantial interest. Use the calculator's "Extra Payment Per Period" field to model accelerated payoff scenarios. Export the amortization schedule to see exactly how much you'll save by paying extra. Contact your lender to confirm their prepayment policies before you finalize your loan agreement.

The calculator focuses on loan financing scenarios. However, you can use it to calculate the true cost of ownership (payments, interest, taxes) and compare that to published lease rates. For a deeper lease-versus-buy analysis, see our Lease vs. Buy Aircraft guide. Leasing offers flexibility; buying builds equity and enables tax deductions—the right choice depends on your mission profile and financial goals.

Enter the trade-in value in the "Trade-In Value" field under the Purchase section. The calculator reduces the taxable base and amount financed by your trade-in value. You can also toggle "Tax Applies To" to "Price minus Trade-In" if your state allows trade-in credits on sales tax. This helps you see the true net cost of upgrading to a new aircraft.

If the aircraft market declines and your aircraft is worth less than your loan balance, you are "upside down" on the loan. This affects your LTV negatively and makes refinancing or selling more challenging. To mitigate this risk, consider a shorter loan term, larger down payment, or maintaining excellent maintenance records (which preserve aircraft value). The calculator shows your LTV in the results, helping you assess this risk upfront.

Start with our comprehensive guides on aircraft financing, which cover rates, down payments, approval tips, aircraft types, tax strategies, and state-specific information. Our 2025 rates guide and first-time buyer guide are excellent starting points. Use this calculator to model your scenario, then reach out to Jaken Aviation for personalized guidance and rate quotes.