Revenue Rex logo mark
💰 Financial · Rex's Toolbox

Aircraft Depreciation Calculator

Estimate annual value loss and future resale value for a piston aircraft.

Revenue Rex peeking

Rex says

Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.

Try a scenario

Click to load — tweak from there.

Inputs

Result

Estimated value after holding period

$72,992

Total value lost

$12,008

Average annual loss

$2,402

% of original value retained

86%

Revenue Rex peeking

Psst — share this and help Rex grow

One click, a permanent link with your numbers baked in.

More financial

How to use this

  1. 1Enter purchase price ($).
  2. 2Enter estimated annual depreciation rate (%).
  3. 3Enter years held.
  4. 4Enter residual value floor (% of original).
  5. 5Read your estimated value after holding period on the right — it updates as you type.
  6. 6Hit Share to keep the scenario or send it to someone.

About this calculator

Unlike cars, well-maintained piston aircraft don't depreciate on a smooth exponential curve — value tends to hold flatter than cars for the first years, then drops in steps around major maintenance events (approaching TBO with no overhaul reserve, upcoming avionics obsolescence) and rises again right after a fresh overhaul or major avionics upgrade. This calculator uses a simplified straight-line-with-floor model based on a typical annual depreciation rate to estimate value over a holding period, while flagging that a fresh engine or panel upgrade should be added back to book value rather than assumed to depreciate from day one.

FormulaValue after n years = purchase price × (1 − annual rate)^n, floored at a minimum residual percentage of original price.

Worked example

Using the values the calculator loads with:

Inputs

  • Purchase price: 85000 $
  • Estimated annual depreciation rate: 3 %
  • Years held: 5
  • Residual value floor: 40 % of original

Results

  • Estimated value after holding period: $72,992
  • Total value lost: $12,008
  • Average annual loss: $2,402
  • % of original value retained: 86%

What each field means

Inputs

Purchase price ($)
The purchase price used in the calculation, measured in $. Starts at 85000 $ so you have a working example on load.
Estimated annual depreciation rate (%)
The estimated annual depreciation rate used in the calculation, measured in %. Starts at 3 % so you have a working example on load. Accepted range: 0–15 %.
Years held
The years held used in the calculation. Starts at 5 so you have a working example on load. Accepted range: 1–30.
Residual value floor (% of original)
The residual value floor used in the calculation, measured in % of original. Starts at 40 % of original so you have a working example on load. Accepted range: 0–100 % of original.

Results

Estimated value after holding period
Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Total value lost
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Average annual loss
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
% of original value retained
Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

Why does this use a floor instead of pure exponential decay?

Airframes don't depreciate toward zero the way cars or electronics do because the underlying structure, with proper maintenance, has an indefinite service life and value tends to stabilize once an aircraft is old enough that buyers are paying mainly for engine/prop time remaining and avionics condition rather than airframe age itself. A floor around 30-50% of original value better reflects how older, well-maintained trainers and simple singles actually trade.

Why do some aircraft appear to gain value?

Rising demand for trainer-category aircraft, general inflation in aircraft prices (notably after 2020), and low new-aircraft production have pushed used prices of common trainers like 172s and Cherokees up in nominal dollars even as they age, which can look like value appreciation despite the underlying airframe aging normally. This calculator models a depreciating baseline and doesn't capture market-wide price inflation.

Does an engine overhaul restore lost value?

Yes, substantially — a fresh overhaul typically adds most of its direct cost back to resale value since buyers pay a premium for low time since major overhaul (SMOH), effectively resetting part of the depreciation clock for the engine even though the airframe continues aging normally.

How does avionics affect this estimate?

An aircraft with an outdated panel lacking ADS-B Out or modern glass avionics can see accelerated effective depreciation as buyers increasingly discount or avoid older panels, while a recent glass panel or ADS-B-compliant upgrade adds value roughly in line with upgrade cost for several years before that upgrade itself starts to age out.

Accuracy and 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.

Related tools

Cite this calculator

Writing about this topic? Grab a citation — every link helps keep these tools free.

APA
RevenueLab. (2026). Aircraft Depreciation Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/aircraft-depreciation
HTML
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/aircraft-depreciation" target="_blank" rel="noopener">Aircraft Depreciation Calculator — RevenueLab</a> (2026).</p>
Markdown
Source: [Aircraft Depreciation Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/aircraft-depreciation) (2026).
Advertisement