The method behind your flight plan.

The tools calculate estimates from your inputs. Starting values are examples. They are not a live lender rate, market valuation, insurance quote or tax determination.

Loan payments, interest and maturity

The interest-rate input is the nominal annual contract rate. It excludes fees and is not a fee-inclusive regulatory APR. Compounding and payment frequency are separate settings. The rate for each payment period is:

r = (1 + annual_rate / compounding_periods) ^ (compounding_periods / payments_per_year) − 1

Annual rate in this formula is a decimal. A monthly-compounding, monthly-payment scenario divides the nominal annual rate by twelve. The scheduled payment amortizes the starting principal, less any discounted target balloon, across the amortization period. At zero interest, it is principal less target balloon divided by the number of payments.

A shorter loan maturity stops the schedule before the amortization period ends. Remaining principal is due as a balloon with the final scheduled payment. The maturity cannot exceed the amortization period. An explicit target balloon applies at the amortization deadline; a shorter maturity can leave a larger balance.

An interest-only period is included inside the original amortization period. Subsequent payments are recalculated across the remaining periods. Extra principal is applied every payment, including interest-only payments, and can shorten the schedule or reduce the balloon. Payments are capped at the amount still owed.

The first-payment date is the date of the first scheduled payment. Subsequent dates preserve that day of the month, capped at month end. The balloon shares the last scheduled date. There is no additional month of interest assumed for the balloon.

Purchase cash, fees and trade-ins

Amount financed is price less down payment and trade-in value, plus the trade-in debt payoff and any financed tax or fees. Cash at closing is the down payment plus tax and fees not financed. Origination percentage is applied to purchase price, as labeled. Use fixed fees if the written quote uses a different basis.

“Loan payments + closing cash” is a cash-flow total. Trade equity is a separate non-cash contribution. Neither this total nor a debt payment is a complete economic cost of ownership. An optional resale assumption shows equity immediately before the balloon is paid.

Limits

The engine uses periodic interest with full precision internally and rounds displayed amounts. It excludes lender-specific daily accrual, actual/360 or actual/365 day counts, irregular first periods, changing interest rates, late fees and payment restrictions. Your lender’s written schedule controls.

Ownership costs and reserves

The ownership worksheet separates fixed annual costs, direct operating spending and reserve funding:

• Fixed costs: insurance + twelve months of hangar or tie-down + inspection budget + other fixed costs.
• Direct costs: annual flight hours × (fuel burn × fuel price + routine maintenance per hour).
• Engine reserve per hour: the unfunded overhaul budget divided by hours remaining to overhaul.
• Annual reserves: annual flight hours × (engine reserve per hour + propeller reserve per hour).
• Loan spending: scheduled payments during the first twelve months of the loan scenario, when included.

Reserves represent cash set aside for future work. Do not put the same overhaul into both routine maintenance and reserves. If remaining engine hours are shorter than annual flying hours, the estimate represents a funding rate through the current engine’s remaining life; it does not schedule a second engine or a complete maintenance lifecycle.

The recurring budget excludes closing cash, balloons, economic depreciation, resale proceeds, crew, charter revenue and business tax benefits. Add costs relevant to your mission and obtain local quotes. The fixed/direct/reserve approach is informed by AOPA’s operating-cost and reserve guidance. Its historical example amounts are not current shop quotes.

Loan offer comparison

Both offers use the same purchase and down-payment scenario, monthly payments and compounding, and no interest-only period or extra principal. Each offer supplies its own rate, closing fees, amortization and maturity. Fees are paid upfront. The horizon must fall on or before both maturities.

Financing cost is interest paid through the horizon plus closing fees. Cash paid plus payoff is closing cash plus scheduled payments plus the outstanding balance. Debt remaining at maturity is shown before the balloon is paid. Prepayment penalties, tax consequences, covenants and refinancing availability are excluded.

Affordability

The planner searches for the largest purchase price that fits both available closing cash after your cushion and the monthly budget after operating expenses and reserves. It uses your loan rate, amortization, tax and fee inputs, with monthly payments, full amortization and no trade-in or balloon. It does not test income, credit, liquidity covenants or lender eligibility.

Refinance and break-even

The current and proposed loans are fully amortizing fixed-rate loans with monthly payments. The comparison includes closing fees and any prepayment penalty you enter. Lifetime savings are old remaining interest less new interest and refinance costs.

Break-even is the first month when cumulative new cash paid plus remaining new debt is lower than cumulative old cash paid plus remaining old debt. This prevents a longer term from being mistaken for savings simply because less principal has been repaid. It is an undiscounted financing comparison, not an investment-return model.

Sharing and privacy

Inputs are computed in your browser. The tools do not submit them to Jaken Aviation. Shared links contain the scenario in the URL fragment; anyone given that link can read the inputs. Printing uses your browser’s print dialog, and CSV downloads are created locally.

The site retains aggregate Google Analytics measurement. Custom tool events contain tool names, not financial inputs. Scenario fragments are excluded from configured page locations. Analytics, shared links and inquiries have different purposes; a financing link opens Jaken’s website without attaching your scenario.