There are two types of costs when it comes to aircraft ownership: fixed cost & variable cost. Fixed cost items are expenses that don’t fluctuate like your bank payment, hangar rent, insurance, and average annual. Variable cost items depend on how much the airplane is used.

For example: 

A Cherokee 140

Fixed Cost

  Insurance $1200

  Hangar $4200

  Loan $4260

+Annual $4000

Annual cost $13,660

Regardless how much or how little this aircraft is flown, it will cost $13,660 annually to own this Cheroke 140. That is the fixed cost (FC).

Variable Cost

  Fuel 9gal/hr @ $6.00gal $54.00

  Oil 10qts every 50hrs @ $7.73qt $01.55

  Unexpected maint $2000 annually $20.00

  Engine overhaul $25,000/2000hr tbo $12.50

+Prop Overhaul $4000/2000hr tbo $02.00

Variable Cost per hour used $90.00

Variable cost (VC) is the cost per hour. The hypothetical example above estimates the aircraft flying 100 hours a year. 

To continue the example of flying 100 hours per year, let’s calculate the total cost per hour taking into consideration both the fixed and variable costs. 

$13,660 annual fixed costs divided by 100 hours of flying = $136 per hour FC. 

Add in the $90 per hour VC. 

Now you have the total of $226 per hour to own and operate your airplane. 

To fly the airplane 100 hours per year, it would be an estimated $22,660 in total annual cost. Not too bad for the freedom and time savings of owning your own airplane! 

Need help breaking this down for your situation or want to think through owning an airplane some more? Contact The Final Fix today!