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From APR to Payment
Aircraft loan calculators convert a nominal APR to a per‑period rate for your chosen payment frequency (monthly, quarterly, semi‑annual, annual). Using the amortization formula, they compute a constant payment that fully amortizes principal over n periods, optionally leaving a balloon at maturity.
The per‑period rate is i = r/m, where r is nominal APR and m is payments per year. The payment is A = P · i / (1 − (1 + i)−n). Each payment breaks into interest (current balance × i) and principal (the rest). Our calculator also accounts for financed taxes/fees and exports a schedule for analysis.
Inputs You Can Control
- Price, down payment, trade‑in: Establish net principal after equity/trade‑in.
- Taxes and fees: Choose whether to finance or pay upfront; this changes principal and total interest.
- APR and compounding: Match lender quotes exactly to model correctly.
- Term and frequency: Set years/months and monthly/quarterly/annual cadence.
- Balloon and extra payments: Compare structures and prepayment strategies.
Workflow
- Enter purchase/equity details; decide whether to finance taxes/fees.
- Set APR, compounding, term, and frequency; add a balloon if desired.
- Export CSV; compare total interest and payoff date across scenarios.
- Stress APR ±100–200 bps; see fixed vs variable.
Examples
Monthly vs Quarterly
At the same APR/term, quarterly payments are larger and accrue more interest between payments, usually raising total interest slightly versus monthly. See Payment Frequency.
With a Balloon
A 20% balloon lowers periodic payments but adds a lump sum at maturity. Compare total interest and ensure an exit strategy; see Balloon guide.
FAQs
Why doesn’t my calculator match a lender quote exactly?
Small differences in compounding, payment convention, fees, and timing can cause discrepancies. Match compounding and cadence, and include financed fees.
How do I model variable rates?
Run Base/High/Low paths using multiple scenarios; compare total interest and payment volatility.
Can I include extra principal?
Yes—our calculator supports extra payments; export the schedule to see how the payoff date and total interest change.
Related Articles
External: CFPB: APR · FRED interest rates · NY Fed: SOFR