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How to Calculate Aircraft Operating Cost Per Hour

How to Calculate Aircraft Operating Cost Per Hour

Published: June 27, 2025

If you own an airplane or dream of owning one someday, it’s important to know how much it really costs to fly it. Not just how much you paid for it—but what it costs every hour it’s in the air. That’s called the aircraft operating cost per hour. And it can be a big deal, especially if you fly often or rent your plane to others.

In this guide, you’ll learn how to calculate your costs, what to include, and why hourly numbers matter more than yearly totals. No matter if you're new to aviation or just looking to get smarter about your budget, you're in the right place.

What Is Aircraft Operating Cost?

Aircraft operating cost is the money it takes to keep an airplane running. This includes everything from fuel to repairs. It doesn’t matter if you fly a small propeller plane or a big jet—every flight brings new expenses.

Operating costs are usually split into two main groups:

1. Fixed Cost

These are costs you pay no matter how often you fly. Think of them as the “always there” bills.

Hangar fees (where your plane is stored)

Insurance

Annual inspections

Loan payments (if you financed the plane)

Even if your airplane stays at the airport all month, you still pay these costs.

2. Variable Cost

These are costs that depend on how much you fly. More flying means more spending.

Fuel and oil

Landing fees

Maintenance during flights

Engine wear and overhaul planning

Tires, brakes, and other parts

When people say “hourly operating cost,” they’re mostly talking about these variable costs. But both fixed and variable costs matter when doing a full cost calculation.

Why Hourly Aircraft Operating Cost Matters

The hourly operating cost shows you the real price of flying. It’s more helpful than simply looking at what you spend each year. It helps with planning, comparing, and making smart choices. No matter if you’re flying a small airplane or a jet, this number gives you power to fly wisely.

This number is important for many reasons, here’s a closer look at why.

It Helps You Understand the Real Cost of Flying

Some costs stay the same all year. These are your fixed costs—like insurance, hangar rent, and inspections. But other costs only happen when you fly. That includes fuel and oillanding fees, and engine wear.

When you break everything down by the number of hours flown, you get a better idea of how much each flight really costs. That’s your hourly operating cost.

It's Useful for Budgeting and Planning

Let’s say you plan to fly 100 hours this year. If your hourly cost is $200, then you know your total flying cost will be around $20,000. That makes it easier to save, budget, or decide how much to fly.

If you only look at your yearly spending, it can be confusing. Hourly numbers are simpler and easier to work with, especially when you're comparing trips or choosing between different aircraft.

It Works Well With a Cost Calculator

Many people use an aircraft cost calculator to help with planning. These tools usually ask for your flying hours, fuel use, and other costs. They give you quick answers, but they need good inputs. Using hourly numbers makes the calculation accurate and useful.

It Helps You Compare Options

Should you buy a plane? Keep your current one? Go for rental instead?

When you know your cost per hour, you can compare aircraft types, flight clubs, or shared ownership. You’ll see what gives you the best deal for the hours you actually fly.

How to Calculate Aircraft Operating Cost Per Hour

Now that we know what operating cost means and why hourly numbers matter, let’s break down how to do the calculation. It’s easier than you might think—and yes, we’ll walk through every part together.

You don’t need to be a math expert. Just take it step by step.

Step 1: Know Your Fixed Costs

These are the costs you pay whether you fly or not. To figure out the cost per hour, you need to know how much they total each year and how many hours you plan to fly.

Here are some fixed costs to include:

Insurance

Hangar or tie-down rental

Annual inspections (required in general aviation)

Subscriptions (like maps or weather tools)

Loan payments (if you financed your airplane)

Let’s say your fixed costs total $12,000 per year. If you fly 200 hours per year, you divide $12,000 by 200.

Fixed cost per hour = $12,000 ÷ 200 = $60 per hour

That’s just for fixed items. Let’s keep going!

Step 2: Estimate Your Variable Costs

These are the things that change depending on how often you fly. This is where you’ll spend the most per flight.

Add up these items:

🔹 Fuel and Oil

Check how many gallons per hour your airplane uses.

Multiply that by the price of fuel at your home airport.

Example: 10 gallons/hour × $6.50 = $65/hour for fuel

🔹 Maintenance & Engine Reserves

Even if nothing breaks, parts wear down.

Set aside money for engine overhaul, usually every 1,500–2,000 hours.

Divide the estimated overhaul cost by those hours.

Example: $30,000 engine overhaul ÷ 2,000 hours = $15/hour

Also include small repairs, tires, brakes, and unexpected work. It adds up.

🔹 Landing Fees

Some airports charge a small fee to land.

Estimate based on where you usually fly. Add a few dollars per hour if you land often.

🔹 Rental Equipment

If you rent headsets, GPS devices, or emergency gear, include those too.

🔹 Oil Changes and Fluids

Include oil, brake fluid, and other small items you replace regularly.

Let’s say your variable costs total about $100/hour.

Step 3: Add in Airframe and Avionics Reserves

Your airframe and avionics will also need upkeep. These may not break often, but when they do, it’s costly.

Avionics systems (like radios, GPS, or autopilot) can need updates or repair.

The airframe—everything not the engine or electronics—also needs checks, corrosion control, and repairs.

Some owners save about $10–$15/hour for airframe and another $10/hour for avionics. It depends on your aircraft’s age and setup.

Step 4: Add It All Together

Now combine everything:

Cost TypeExample Cost Per Hour
Fixed Cost$60
Fuel and Oil$65
Engine Overhaul$15
Maintenance Reserve$10
Landing Fees$5
Avionics Reserve$10
Airframe Reserve$10
Total Hourly Cost$175/hour

That’s your hourly operating cost.

Use a cost calculator if you’d like to try out different numbers. It makes adjusting for different planes or aviation budgets much easier.

Conclusion

Learning how to calculate aircraft operating cost per hour gives you real control. You can plan better, fly smarter, and understand exactly what you’re paying for. Whether you're dreaming about buying your first aircraft or already deep into aircraft ownership, this skill helps you make informed choices.

Ready to crunch the numbers? Start with a good cost calculator, gather your real data, and take flight with confidence.

Frequently Asked Questions

1. How do I estimate fuel cost for my aircraft?

Multiply your plane’s hourly fuel burn by the current fuel price at your local airport.

2. What’s the average hourly operating cost for a small airplane?

It ranges from $100 to $300 depending on the type, age, and engine.

3. Do I need to include hangar fees in hourly cost?

Yes. Divide annual hangar fees by the number of hours you fly each year.

4. What is engine overhaul, and why does it matter?

It’s a full rebuild of your engine after a set number of hours. It’s expensive and should be included in cost planning.

5. Can I use an online tool to help calculate costs?

Yes! A good cost calculator makes the process much easier and more accurate.