Cost per Flight Hour Calculation

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Reviewed and Fact-Checked by:

David Chen, CFA, PPL

Calculate the true operational cost of owning or leasing an aircraft with our comprehensive Cost Per Flight Hour (CPFH) calculator. Accurately estimate your budget by considering both fixed and variable expenses.

Cost Per Flight Hour Calculation

Insurance, hangar rent, crew salaries, etc.
Fuel, maintenance labor, lubricants, etc.
Total hours the aircraft is flown annually.
Used if you are solving for another variable.

Calculated Result:

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Cost Per Flight Hour Calculation Formula

The Cost Per Flight Hour (CPFH) is derived from the sum of fixed and variable costs:

CPFH = (Annual Fixed Costs / Annual Flight Hours) + Variable Costs Per Hour

Formula Source: AOPA Aviation Finance & Planning | Flight Safety Foundation

Variables

  • Annual Fixed Costs (AFC): Expenses that do not change with the number of hours flown (e.g., insurance, hangar, crew salaries).
  • Variable Costs Per Hour (VCPH): Direct costs incurred for every hour flown (e.g., fuel, engine reserves, hourly maintenance).
  • Annual Flight Hours (AFH): The total number of hours flown over the course of one year.
  • Cost Per Flight Hour (CPFH): The final resulting cost, expressed in currency per hour.

Related Calculators

What is Cost Per Flight Hour Calculation?

The Cost Per Flight Hour (CPFH) is a critical metric used in aviation finance and budgeting to determine the true expense of operating an aircraft for every hour it is airborne. It is far more comprehensive than simply looking at fuel and maintenance, as it correctly allocates fixed annual expenses—like insurance and hangar costs—across the total operating time.

Accurately calculating CPFH is essential for fleet management, charter pricing, and personal aircraft ownership decisions. A low CPFH often indicates higher annual utilization (more flight hours to spread fixed costs over), while a high CPFH suggests that the fixed expenses are disproportionately large compared to the annual flight time, making the operation less efficient.

How to Calculate Cost Per Flight Hour (Example)

  1. Identify Annual Fixed Costs (AFC): Assume annual fixed costs (hangar, insurance, license fees) are $60,000.
  2. Determine Variable Costs Per Hour (VCPH): Assume variable costs (fuel, oil, engine reserves) total $200 per hour.
  3. Estimate Annual Flight Hours (AFH): The aircraft is projected to fly 300 hours per year.
  4. Calculate Fixed Cost Per Hour (FCPH): Divide AFC by AFH. $60,000 / 300 hrs = $200/hr.
  5. Calculate Total CPFH: Add FCPH to VCPH. $200/hr (Fixed) + $200/hr (Variable) = $400/hr.
  6. Conclusion: The Cost Per Flight Hour for this aircraft is $400.00.

Frequently Asked Questions (FAQ)

What is the difference between fixed and variable costs?

Fixed costs (e.g., hangar, insurance) are incurred regardless of how much the aircraft flies, while variable costs (e.g., fuel, maintenance) are directly dependent on the hours flown.

Why must I include annual fixed costs in an hourly calculation?

Including fixed costs ensures the CPFH reflects the total economic cost of ownership. Spreading fixed costs over flight hours provides a true, all-in operational rate, crucial for profitability analysis or budgeting.

What if I only have two inputs?

The calculator requires at least three inputs to solve for a single unknown. If only two are provided, the calculation is indeterminate, and an error message will display.

Can I solve for Annual Flight Hours (AFH) instead of CPFH?

Yes. If you input your target CPFH and all cost components, the calculator will solve for the number of Annual Flight Hours needed to achieve that target rate.

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