Aircraft Loan Refinance Comparison

✈️ What is this tool?

This Aircraft Loan Refinance Comparison Tool is a professional-grade financial modeling interface designed specifically for flight operators, aircraft owners, and aviation finance officers. It allows users to model and compare the economic impact of refinancing an existing aircraft loan by simulating side-by-side outcomes of the current vs. proposed loan structures.

By inputting your loan's financial and operational variables, the tool visualizes key refinancing metrics like:

• Monthly payment differentials
• Breakeven period (in months)
• Total interest cost
• Net savings over ownership duration
• Monthly and cumulative cash flow deltas
• Principal + Interest + Fee breakdowns (with charts)

🎯 Purpose & Importance

Refinancing an aircraft loan is a complex decision that depends on a combination of interest rate trends, aircraft ownership duration, refinancing costs, and partial balance treatment. This tool helps aviation professionals answer questions such as:

• “Will refinancing reduce my monthly obligations?”
• “How soon will I recoup refinancing costs?”
• “What are the long-term cost implications over my expected ownership?”

It enables data-driven decisions and supports fleet managers, CFOs, and finance teams in managing long-term aircraft capital efficiently.

👨‍✈️ Who is this for?

This tool is ideal for:

• Aircraft operators with financed fleet assets
• Part 91 or Part 135 operators evaluating refinancing proposals
• Corporate flight departments managing CAPEX
• Aviation leasing consultants and advisors
• Fixed-base operators with internal aircraft holdings

Whether you’re managing one jet or a fleet, this tool translates complex loan mechanics into transparent, actionable visuals.

🧮 Explanation of Parameters

Here is a quick overview of the inputs and what each means:

🔹 Current Loan Section

• Current Loan Balance: The outstanding principal on your existing aircraft loan.
• Remaining Term (years): Number of years left to repay the current loan.
• Interest Rate (%): Current loan’s annual interest rate.
• Monthly Payment: Auto-calculated based on balance, term, and interest.
• Original Loan Term (years): Total years of the original loan when it started (used for amortization modeling).

🔹 Refinance Offer Section

• New Interest Rate (%): Offered rate in the new refinancing deal.
• New Term (years): Duration of the new loan term.
• Refinancing Fee / Cost: Upfront fees, legal costs, or broker commissions incurred during refinancing.

🔹 Flight Profile Section

• Expected Ownership Duration (years): How long you plan to hold the aircraft from today; this bounds the savings analysis.
• Partial Refinancing (% of remaining balance): If refinancing only part of the current debt, enter that percentage. (e.g., 50% = only refinance half of what's owed).

📊 How to Use

1. Enter the loan details into each input field based on your actual and offered terms.
2. Click "Compare Loans".
3. Review the Monthly Savings, Breakeven Point, and Net Savings summary.
4. Scroll to explore:
   • Bar chart comparing total interest, monthly payment, and cost.
   • Pie charts for principal-interest-fee splits.
   • Line chart of monthly payment differences and cumulative savings.
   • Detailed monthly cash flow delta table.

Export results to PDF for reporting or investment decision discussions.

🧠 Example Use Case

A Part 135 charter operator currently holds a $2,500,000 aircraft loan with an interest rate of 6.5% and 5 years remaining on the term. Their aircraft is a mid-size business jet used intensively for on-demand charter operations, and the operator anticipates retaining ownership for another 6 years.

They are presented with a refinancing offer at 5.25% interest over a 7-year term, with a refinancing cost of $15,000. Instead of relying on spreadsheets or assumptions, the operator inputs these figures into the Aircraft Loan Refinance Comparison Tool to quantify the actual impact.

The results show:

• Monthly Payment Reduction: ~$13,286 less per month, significantly boosting near-term cash flow.
• Breakeven Period: ~1.1 months — refinancing costs are recovered in just over 30 days.
• Net Savings: ~$941,578 over their expected 6-year ownership horizon, after accounting for all refinancing expenses.

Additionally, the dashboard visualizes:

• Substantially lower total interest paid under the new refinance structure.
• A longer but more manageable amortization curve, helping align debt service with variable charter revenue.
• Stronger cash flow flexibility, allowing the operator to reallocate funds toward engine reserves, avionics upgrades, or expansion capital.

For an operator with seasonal demand fluctuations, better liquidity and improved debt service ratios can significantly enhance financial resilience and make the fleet more bankable for future financing.

This use case illustrates how the tool goes beyond just comparing numbers—it supports strategic financial planning, operational budgeting, and stakeholder reporting, all within minutes.

This tool converts complex loan and refinancing scenarios into actionable insights, empowering aviation stakeholders to make informed, strategic financial decisions. For feedback, partnership inquiries, or tailored enterprise solutions, please reach out via our contact page.