Part 135 Charter Hourly Rate Calculator — Rex's Toolbox

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

Fuel cost per hour($/hr)

Maintenance/engine reserve($/hr)

Crew cost per flight hour($/hr)

Annual fixed overhead($)

Expected annual flight hours

Target profit margin(%)

Result

Charter rate to quote

$1,765

Direct operating cost per hour

$850

Overhead allocated per hour

$650

Total cost per hour

$1,500

Profit per hour at this rate

$265

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How to use this

1Enter fuel cost per hour ($/hr).
2Enter maintenance/engine reserve ($/hr).
3Enter crew cost per flight hour ($/hr).
4Enter annual fixed overhead ($).
5Enter expected annual flight hours.
6Enter target profit margin (%).
7Read your charter rate to quote on the right — it updates as you type.
8Hit Share to keep the scenario or send it to someone.

About this calculator

Charter operators price off direct operating cost per hour (fuel, maintenance reserves, crew pay allocated per flight hour) plus a markup that covers fixed overhead (insurance, hangar, dispatch, management fees, Part 135 certificate compliance costs) and target profit margin. Undercharging is common among new operators trying to compete on price, which erodes margin needed to fund reserves for engine overhauls and unscheduled maintenance. This calculator builds the rate up from real cost components so you can see what margin you're actually running at a given quoted rate.

FormulaDirect cost/hr = fuel + maintenance reserve + crew cost/hr. Rate = (direct cost/hr + overhead/hr) ÷ (1 − target margin %).

Worked example

Using the values the calculator loads with:

Inputs

Fuel cost per hour: 450 $/hr
Maintenance/engine reserve: 220 $/hr
Crew cost per flight hour: 180 $/hr
Annual fixed overhead: 260000 $
Expected annual flight hours: 400
Target profit margin: 15 %

Results

Charter rate to quote: $1,765
Direct operating cost per hour: $850
Overhead allocated per hour: $650
Total cost per hour: $1,500
Profit per hour at this rate: $265

What each field means

Inputs

Fuel cost per hour ($/hr): The fuel cost per hour used in the calculation, measured in $/hr. Starts at 450 $/hr so you have a working example on load.
Maintenance/engine reserve ($/hr): The maintenance/engine reserve used in the calculation, measured in $/hr. Starts at 220 $/hr so you have a working example on load.
Crew cost per flight hour ($/hr): The crew cost per flight hour used in the calculation, measured in $/hr. Starts at 180 $/hr so you have a working example on load.
Annual fixed overhead ($): The annual fixed overhead used in the calculation, measured in $. Starts at 260000 $ so you have a working example on load.
Expected annual flight hours: The expected annual flight hours used in the calculation. Starts at 400 so you have a working example on load.
Target profit margin (%): The target profit margin used in the calculation, measured in %. Starts at 15 % so you have a working example on load. Accepted range: 0–50 %.

Results

Charter rate to quote: 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.
Direct operating cost per hour: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Overhead allocated per hour: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Total cost per hour: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Profit per hour at this rate: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

Why does annual hours flown swing the rate so much?

Overhead is fixed regardless of hours flown, so a $260,000 annual overhead spread over 400 hours adds $650/hr, but the same overhead spread over 800 hours only adds $325/hr. Operators with strong utilization can profitably quote lower rates than low-utilization operators carrying the same fixed cost base, which is why charter pricing varies so much between operators flying the same aircraft type.

What typically sits inside 'annual fixed overhead' for a Part 135 operator?

Certificate management and compliance costs, hangar/ramp fees, base insurance premium (liability plus hull), management/dispatch salaries, training costs for currency and recurrent checks, and administrative/back-office costs. For a single light jet operation this commonly runs $200,000-400,000/year depending on crew structure and base location.

Is 15% margin realistic for charter?

It's a reasonable target for an established operator with good utilization; new entrants sometimes run thinner (5-10%) to win market share, which leaves little cushion for unscheduled maintenance or a slow season. Well-run charter operations with premium positioning can command 20-25%+ margins on high-demand routes or aircraft types.

Does this rate include repositioning (deadhead) legs?

No — this calculates a straightforward billed flight-hour rate. Real charter quotes typically add a repositioning charge or build an average deadhead factor into the quoted trip price, since the aircraft and crew cost money whether or not a paying passenger is aboard on the return or positioning leg.

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

Aircraft Ownership Cost Per Hour Calculator

True cost per flight hour once fixed and variable costs are combined.

Engine Reserve Fund Calculator

How much to set aside per flight hour to fund the next overhaul.

Cite this calculator

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APA

RevenueLab. (2026). Part 135 Charter Hourly Rate Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/part135-charter-rate

HTML

<p>Source: <a href="https://www.revenuelab.fyi/toolbox/part135-charter-rate" target="_blank" rel="noopener">Part 135 Charter Hourly Rate Calculator — RevenueLab</a> (2026).</p>

Markdown

Source: [Part 135 Charter Hourly Rate Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/part135-charter-rate) (2026).