Fractional Jet Share True Cost Calculator
Convert marketing brochures into real economics by combining the share buy-in, annual dues, occupied hourly charges, and expected flying time. Optionally adjust how long you plan to hold the share and the assumed residual value to see the amortised buy-in cost and the resulting effective hourly rate.
Outputs assume fixed hourly rates and exclude taxes. Confirm contract specifics, repositioning fees, and fuel surcharges with your provider.
Examples
- $780,000 buy-in, $220,000 management, $2,200 hourly, 95 hours, 5-year hold, 65% residual ⇒ Annualised buy-in is $54,600.00, bringing total yearly spend to $483,600.00 and the effective hourly cost to $5,090.53.
- $450,000 buy-in, $160,000 management, $1,950 hourly, 60 hours, defaults for hold and residual ⇒ Annual spend hits $308,500.00 with an effective hourly cost of $5,141.67, highlighting underutilisation risk.
FAQ
How do ferry or peak-day surcharges factor in?
Add expected surcharges to the hourly rate so they are included in the occupied hourly spend portion of the model.
Can I compare financing options?
Include annual loan payments in the management fee field or add them to the buy-in amount to reflect financed ownership costs.
What if I underfly my hours?
Lower the annual hours input to see how the effective hourly cost climbs when you fail to use the full allotment.
Additional Information
- Buy-in amortisation multiplies the non-residual portion of the capital outlay by the holding period to align with typical contract terms.
- Occupied hourly spend scales linearly with planned hours—input a realistic utilization target to avoid overstating ROI.
- Residual value defaults to 65%, approximating common resale valuations after several years of use.
- Adjust the holding period to compare short-term trial ownership against long-term commitments.