5-Year Total Cost of Ownership

Why Total Cost of Ownership Matters

Most first-time aircraft buyers focus on the purchase price, but the sticker price is often less than half of what you will actually spend over 5 years of ownership. A $75,000 Cessna 172 can easily cost $130,000+ in total over 5 years once you add depreciation, insurance, hangar rent, fuel, maintenance, and the engine overhaul reserve.

This calculator gives you the Edmunds-style breakdown that the aviation industry has been missing: a year-by-year, line-by-line accounting of what it actually costs to own a specific aircraft. No other free tool provides this level of detail across 1,400+ models.

Understanding Aircraft Depreciation

Aircraft depreciation follows a declining balance curve, similar to other high-value assets. The rate varies significantly by aircraft category:

• Single-engine pistons depreciate roughly 7% per year — older Cessnas and Pipers with stable demand hold value well
• Multi-engine pistons depreciate around 8% per year — higher operating costs reduce buyer pool
• Turboprops depreciate about 9% per year — mid-range between pistons and jets
• Jets depreciate fastest at 10% per year — high operating costs and inspection requirements accelerate value loss
• Experimental/homebuilt hold value best at 5% per year — limited supply and niche demand support prices

Key factors that affect depreciation: engine time remaining (a run-out engine deducts the full overhaul cost), avionics quality (modern glass adds 15-25% to value), damage history, paint and interior condition, and overall market conditions.

Fixed Costs: The Cost of Just Sitting in a Hangar

Fixed costs are the expenses you pay whether you fly or not. These typically include:

• Insurance: $1,500-$4,000/year for single-engine pistons, $3,000-$12,000 for twins, $15,000+ for turbines. Rates depend heavily on pilot experience.
• Hangar: $200-$800/month depending on location and aircraft size. Major metro airports charge 2-3x more than rural fields.
• Annual inspection: $1,000-$3,000 for pistons, $5,000-$15,000+ for turbines. The annual is mandatory and often reveals additional maintenance items.
• Registration, database fees, and misc: $500-$1,500/year for GPS database subscriptions, registration renewal, and miscellaneous expenses.

Variable Costs: The Price of Every Flight Hour

Variable costs scale with how much you fly. The two biggest components are fuel and the engine overhaul reserve:

• Fuel: Fuel burn ranges from 5 GPH (light sport) to 200+ GPH (large jets). At $6.50/gallon for avgas, a Cessna 172 burning 8.5 GPH costs $55/hour just in fuel.
• Engine overhaul reserve: Smart owners set aside money each flight hour toward the inevitable engine overhaul. A typical piston overhaul costs $25,000-$45,000 at 2,000-hour TBO, translating to $12-$22/hour in reserve.
• Oil, filters, and unscheduled maintenance: Budget $5-$15/hour for routine consumables and unexpected repairs.

How to Reduce Your Total Cost of Ownership

1. Buy an older aircraft where depreciation has flattened — a 1975 Cessna 172 has already lost most of its depreciation; your 5-year loss may be near zero.
2. Consider a partnership — splitting fixed costs 2-4 ways can save $5,000-$15,000/year. Use our Partnership Splitter to model the savings.
3. Choose a fuel-efficient model — the difference between 8 GPH and 15 GPH at 100 hours/year is $4,550 annually at today's fuel prices.
4. Shop hangar rates aggressively — airports 30 minutes away from major metros can be half the cost. Check our Hangar Rate Explorer.
5. Build flight hours to reduce insurance — experienced pilots (500+ total time, instrument rated) pay 30-50% less than new PPLs for the same aircraft.