Fractional Jet Share True Cost Calculator
Convert glossy marketing brochures into real ownership economics. Enter your share buy-in, annual management dues, occupied hourly charges, and projected utilization to expose the amortized annual spend and the true hourly rate. Tweak the holding period and residual value to compare short trial ownership versus a decade-long commitment, and instantly see how flying more—or less—spreads fixed costs across each hour in the air.
Outputs assume fixed hourly rates and exclude taxes. Confirm contract specifics, repositioning fees, and fuel surcharges with your provider, and consult aviation and tax advisors before purchasing a share.
Examples
- $780,000 buy-in, $220,000 management, $2,200 hourly, 95 hours, 5-year hold, 65% residual ⇒ Amortising the capital adds $54,600.00 per year, pushing total annual spend to $483,600.00 and delivering an effective hourly cost of $5,090.53.
- $450,000 buy-in, $160,000 management, $1,950 hourly, 60 hours, 6-year hold, 55% residual ⇒ Annual spend lands at $321,050.00 and the effective hourly cost climbs to $5,350.83, illustrating how lighter utilization raises cost per hour.
- $920,000 buy-in, $265,000 management, $2,450 hourly, 130 hours, 7-year hold, 70% residual ⇒ Higher utilisation spreads fixed costs so total annual spend is $582,950.00 and the hourly cost drops to $4,484.23.
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.
How do tax benefits or depreciation schedules fit in?
Model tax deductions separately and subtract any annual tax savings from the management fee field so the calculator reflects after-tax cash outlay.
Should I include maintenance reserves or engine programs?
Yes—add recurring reserve contributions to the management fee so the annual cost accounts for future overhaul commitments.
Additional Information
- Buy-in amortisation spreads the depreciating portion of the capital outlay evenly across the selected holding period.
- Occupied hourly spend scales directly with planned hours—test aggressive and conservative utilisation to bracket cost per hour.
- Residual value defaults to 65%, approximating common resale valuations after several years of use, but you can lower it to stress-test soft markets.
- Adjust the holding period to compare a short trial, a mid-term contract, and keeping the share for a decade or longer.
- The output summarises annual spend and effective hourly cost so you can benchmark against charter, jet cards, or whole-aircraft ownership.