{
  "slug": "aircraft-leaseback-roi",
  "title": "Aircraft Leaseback ROI Calculator",
  "heading": "Aircraft Leaseback Economics Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/aircraft-leaseback-roi",
  "summary": "Whether renting your plane through a flight school actually pays for itself.",
  "description": "Leaseback arrangements put your airplane on a flight school's rental line in exchange for a share of the rental revenue, with the pitch being that renters cover your fixed costs. The math only works if utilization is high enough, because leaseback aircraft see much harder use — multiple students per day, less gentle handling — which accelerates wear and shortens engine and airframe life relative to your revenue share. This calculator nets your revenue share against fixed costs, variable costs at leaseback utilization, and an accelerated wear reserve to show real annual cash flow.",
  "formula": "Revenue = hours rented × hourly rate × your revenue share %. Net cash flow = revenue − fixed costs − (hours rented × variable cost per hour) − wear reserve.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=aircraft-leaseback-roi",
  "inputs": [
    {
      "id": "hoursRented",
      "label": "Hours rented per year",
      "kind": "number",
      "hint": null,
      "default": 400,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "rentalRate",
      "label": "Rental rate charged to renters",
      "kind": "number",
      "hint": null,
      "default": 165,
      "unit": "$/hr",
      "min": 0,
      "max": null
    },
    {
      "id": "revenueShare",
      "label": "Your revenue share",
      "kind": "number",
      "hint": null,
      "default": 70,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "fixedAnnual",
      "label": "Your annual fixed costs",
      "kind": "number",
      "hint": null,
      "default": 15000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "variableRate",
      "label": "Variable cost per hour at heavy use",
      "kind": "number",
      "hint": null,
      "default": 65,
      "unit": "$/hr",
      "min": 0,
      "max": null
    },
    {
      "id": "wearReserve",
      "label": "Extra accelerated-wear reserve",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": "$/hr",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "netCashFlow",
      "label": "Net annual cash flow to you",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "revenue",
      "label": "Your revenue share",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "variableTotal",
      "label": "Variable cost at this utilization",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "wearTotal",
      "label": "Accelerated wear reserve set aside",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakevenHours",
      "label": "Breakeven hours rented per year",
      "format": "number",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Hours rented per year: 400",
      "Rental rate charged to renters: 165 $/hr",
      "Your revenue share: 70 %",
      "Your annual fixed costs: 15000 $",
      "Variable cost per hour at heavy use: 65 $/hr",
      "Extra accelerated-wear reserve: 10 $/hr"
    ],
    "outputs": [
      "Net annual cash flow to you: $1,200",
      "Your revenue share: $46,200",
      "Variable cost at this utilization: $26,000",
      "Accelerated wear reserve set aside: $4,000",
      "Breakeven hours rented per year: 370"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter hours rented per year.",
      "Enter rental rate charged to renters ($/hr).",
      "Enter your revenue share (%).",
      "Enter your annual fixed costs ($).",
      "Enter variable cost per hour at heavy use ($/hr).",
      "Enter extra accelerated-wear reserve ($/hr).",
      "Read your net annual cash flow to you on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "hoursRented": 250,
        "rentalRate": 100,
        "revenueShare": 40,
        "fixedAnnual": 9000,
        "variableRate": 40,
        "wearReserve": 6
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "hoursRented": 400,
        "rentalRate": 165,
        "revenueShare": 70,
        "fixedAnnual": 15000,
        "variableRate": 65,
        "wearReserve": 10
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "hoursRented": 650,
        "rentalRate": 265,
        "revenueShare": 100,
        "fixedAnnual": 24000,
        "variableRate": 105,
        "wearReserve": 16
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What's a typical revenue share split?",
      "a": "50/50 to 80/20 in the owner's favor is common, depending on who pays for fuel, maintenance, and insurance. A school-managed leaseback where the school handles scheduling, fuel, and routine maintenance usually takes a bigger cut (30-50%) than an arrangement where the owner still manages maintenance directly."
    },
    {
      "q": "Why is the wear reserve separate from normal variable cost?",
      "a": "Leaseback aircraft used for primary training absorb harder landings, more cycles, and less gentle power management than a typical owner-flown airplane, which measurably shortens engine TBO achievement and increases airframe fatigue. Setting aside an extra $8-15/hr beyond a normal maintenance reserve accounts for this accelerated wear so you're not surprised by an early overhaul."
    },
    {
      "q": "Does leaseback increase or decrease resale value?",
      "a": "It generally decreases resale value relative to an identical airframe with lower total time and a private-use-only logbook history, because buyers discount heavy trainer use and multiple-owner wear patterns. Factor this resale discount into your overall return, not just the annual cash flow."
    },
    {
      "q": "Is 400 hours per year realistic for a leaseback trainer?",
      "a": "Well-utilized trainers at busy flight schools can hit 500-800 hours annually, while a poorly marketed or older airframe might only see 150-250. Ask the school for actual utilization data on comparable aircraft on their line before committing, since this single number drives whether leaseback cash flow is positive or negative."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/aircraft-partnership-cost-share",
    "https://www.revenuelab.fyi/toolbox/aircraft-ownership-cost-per-hour",
    "https://www.revenuelab.fyi/toolbox/engine-reserve-fund"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Aircraft Leaseback ROI Calculator (https://www.revenuelab.fyi/toolbox/aircraft-leaseback-roi)"
}