Finance an aircraft · Interactive

Indicative · live

Aircraft facility · term sheet

Loan to value 90%

Loan $23.2M Aircraft $25.8M

Facility: $23,220,000 term loan
Equity at closing: $2,580,000
Term: 7 years, 20-year amortization
Rate: 6.45% fixed, indicative
Monthly payment: $172,439
Balance at term: $18,179,733
Year-one tax saving: $9,546,000
Cost of ownership: $1,565,013 a year

6.1 years of flying, paid for by year-one depreciation.

Summary

The scenario at a glance.

Acquisition: $25.8M at 90% loan to value
Cost of ownership: $1.6M a year, 400 hours
Monthly payment: $172K 7-year term, 20-year amortization
Year-one tax saving: $9.5M 100% bonus depreciation at 37%
Years of flying covered: 6.1 by the year-one saving
Note at the cap: $37.8M on $23.2M over 84 months

Cost of ownership

What it costs to fly.

Annual cost by hours flown Year one, in 50-hour steps

$1.1M 200 h
$1.2M 250 h
$1.3M 300 h
$1.4M 350 h
$1.6M 400 h
$1.7M 450 h
$1.8M 500 h
$1.9M 550 h
$2.1M 600 h

Year	Fixed	Direct	Total	Per hour
1	$584,301	$980,712	$1,565,013	$3,913
2	$664,861	$998,052	$1,662,913	$4,157
3	$664,861	$1,024,056	$1,688,917	$4,222
4	$664,861	$1,032,160	$1,697,021	$4,243
5	$664,861	$1,063,384	$1,728,245	$4,321

Embraer Operating Cost Guide v26.02, used with permission. Fuel, labor rates and fixed costs from the Conklin & de Decker Report, April 2026; engine maintenance from Honeywell MSP 2026 rates.

Residual value

What the aircraft is worth along the way.

Aircraft value Loan balance

Year	Value	Loan balance	Equity
0	$25.8M	$23.2M	$2.6M
1	$22.7M	$22.6M	$73K
2	$21.3M	$22.0M	−$662K
3	$20.1M	$21.3M	−$1.3M
4	$18.9M	$20.6M	−$1.8M
5	$17.7M	$19.9M	−$2.1M
6	$16.7M	$19.0M	−$2.4M
7	$15.7M	$18.2M	−$2.5M
8	$14.7M	—	$14.7M
9	$13.8M	—	$13.8M
10	$13.0M	—	$13.0M

A planning curve: 12% in the first year, 6% a year after. The gap between value and balance is the family’s equity, which can run negative at a high loan to value.

The protected note

Borrow at ninety, keep the cash working.

Notional $23.2M , the cash not spent on the aircraft.
Floor $23,220,000 back at maturity, whatever the index does.
Cap 63% over 84 months, 9% a year on the two-year structure.
Covers the balance The principal alone exceeds the $18.2M still owed when the note matures.

Hypothetical

Principal protected note · at maturity

S&P 500: The note
− 40%: $23,220,000 floor
− 15%: $23,220,000 floor
+ 0%: $23,220,000
+ 10%: $25,542,000
+ 63%: $37,848,600 cap
+ 78%: $37,848,600 cap

Aviation slip November 15, 2026 · —

$25.8M aircraft, financed.

Aircraft basis: Embraer Praetor 600E
Acquisition cost: $25,800,000
Flight hours a year: 400
Loan to value: 90%
Rate: 6.45%
Term: 7 years, 20-year amortization
Marginal tax rate: 37%
Note horizon: 84 months

Facility: $23,220,000
Equity at closing: $2,580,000
Monthly payment: $172,439
Balance at term: $18,179,733
Cost of ownership, year one: $1,565,013
All-in cost per hour: $3,913
Year-one tax saving: $9,546,000
Years of flying covered: 6.1
Residual at term: $15.7M
Note at the cap: $37,848,600

Adjust the inputs

Configure the purchase

The scenario at a glance.

What it costs to fly.

What the aircraft is worth along the way.

Borrow at ninety, keep the cash working.

$25.8M aircraft, financed.