Jet Depreciation Calculator
Model aircraft depreciation by age and type, and forecast residual values to understand the true cost of ownership over time.
Depreciation Parameters
Depreciation Analysis
Understanding Jet Depreciation
Depreciation is often the single largest cost of jet ownership, exceeding even fuel and crew expenses. Private jets typically depreciate 5-12% annually, with the steepest losses occurring in the first 5 years of ownership. Understanding depreciation patterns is crucial for timing purchases and sales.
Different aircraft categories depreciate at different rates. Light jets tend to depreciate faster (8-12% per year) due to higher production volumes and model turnover, while ultra-long-range jets hold value better (4-6% per year) due to limited supply and high demand.
Market conditions significantly affect depreciation. Strong economic conditions, new model launches, and supply constraints can slow or even reverse depreciation, as seen during the post-2020 surge in private aviation demand. Conversely, economic downturns can accelerate value losses.
Depreciation Formula
Future Value = Current Value x (1 - Annual Depreciation Rate)^Years
Total Depreciation = Purchase Price - Future Value
Annual Depreciation Cost = Total Depreciation / Ownership Years
This uses a declining balance method. Actual depreciation may vary based on market conditions, maintenance status, and aircraft-specific factors.
Frequently Asked Questions
How fast do private jets depreciate?
Most private jets depreciate 5-12% annually, with the heaviest losses in years 1-5. A new $20 million midsize jet might be worth $12-14 million after 5 years. Depreciation slows as aircraft age, with older jets losing smaller dollar amounts annually.
Which jets hold their value best?
Ultra-long-range jets like the Gulfstream G650 and Bombardier Global 7500 historically hold value best due to limited production and strong demand. Well-maintained aircraft with low hours and current engine programs also retain value better than average.
Can I get tax benefits from jet depreciation?
Yes, if the aircraft is used for business purposes. MACRS depreciation allows accelerated write-offs over 5-7 years. Bonus depreciation provisions may allow 100% first-year expensing in some tax years. Consult a tax professional for specific guidance.