Aircraft Lease Cost Calculator
Estimate your monthly aircraft lease payment based on market value, lease term, residual value, and interest rate. Use this when negotiating a wet or dry lease to understand your true monthly obligation before signing.
About this calculator
Aircraft lease payments are calculated similarly to auto leases — you finance the depreciation over the lease period plus a monthly finance charge. The formula is: Monthly Payment = ((aircraftValue × (1 − residualValue/100)) / leaseTerm) + ((aircraftValue × interestRate/100) / 12). The first term represents the depreciation component: the portion of the aircraft's value you consume during the lease. The second term is the monthly finance charge applied to the full aircraft value at the given APR. Residual value is the estimated worth of the aircraft at lease end, expressed as a percentage of market value. A higher residual value lowers your monthly payment because you are financing less depreciation. Interest rate (APR) directly scales the finance charge, so even a 1% difference on a multi-million-dollar aircraft can meaningfully change your monthly cost.
How to use
Suppose you lease an aircraft worth $2,000,000 for 60 months, with a 60% residual value and a 5% APR. Depreciation component: ($2,000,000 × (1 − 0.60)) / 60 = ($2,000,000 × 0.40) / 60 = $800,000 / 60 = $13,333/month. Finance charge: ($2,000,000 × 0.05) / 12 = $100,000 / 12 = $8,333/month. Total monthly payment = $13,333 + $8,333 = $21,667/month. Over 60 months that totals $1,300,020 paid, while the aircraft retains $1,200,000 in residual value.
Frequently asked questions
How does residual value percentage affect my aircraft lease payment?
Residual value represents what the aircraft is expected to be worth at the end of the lease, expressed as a percentage of its market value. A higher residual value means you are financing less of the aircraft's depreciation, which directly lowers your monthly payment. For example, raising residual value from 50% to 65% on a $2M aircraft saves you $5,000 per month over a 60-month lease. Lessors set residual values based on aircraft type, age, market demand, and historical resale data. Negotiating a higher residual value is one of the most effective ways to reduce lease costs.
What is the difference between a wet lease and a dry lease for aircraft?
A dry lease provides only the aircraft — the lessee is responsible for crew, maintenance, insurance, and fuel. A wet lease includes the aircraft along with crew, maintenance, and insurance, making it a turnkey solution. Wet leases typically cost significantly more per month but reduce operational complexity. The formula used in this calculator reflects a dry lease structure where the lessee finances depreciation and carries interest costs. When comparing lease types, always account for the full cost of ownership under a dry lease versus the all-in rate of a wet lease.
Why does the interest rate apply to the full aircraft value rather than the depreciated amount?
In a standard aircraft lease, the finance charge is applied to the full market value of the aircraft, not just the depreciated portion, because the lessor has their entire capital at risk throughout the lease term. This differs from a loan amortization where the principal balance decreases with each payment. It is effectively a usage fee on the lessor's full asset value. This structure means reducing the aircraft's market value — for instance, by selecting a slightly older model — has a proportionally larger impact on the finance charge than on the depreciation component. Understanding this helps you evaluate whether buying versus leasing makes more financial sense at different price points.