Rule of thumb

[Tony_Scarpelli]

Hi Guys,

Used to hear that total cost of ownership per hour works out to about 2-3 times fuel cost. Is that true today with fuel being so expensive?

I ran some calculations and I find that my total annual, maintenance, insurance, hangar rent and fuel assuming flying only 50 hrs a year works out to about 2-2.2x fuel. I figure my costs at about $160-180 per hour. This does not calculate any reserves, payments or cost and depreciation of the aircraft just the fixed cost and operating costs for 50 hrs.

It costs me about $8000 to fly only 50 hrs. Above this and the hourly cost starts to come down as the insurance, inspection and hangar are fixed at about $3800 per year.

 

[bflynn]

I think that value is going to depend on what aircraft you're flying, but in general I believe the 2-3 times rules is a good one. Each of the aircraft types owned by our club falls between 2.4-2.7 times fuel costs - and since we are a not-for-profit club, that means those values are pretty much exact costs. That's a C-152 at about $75/hour total up to a Mooney at $165/hour.

Keep in mind that most (all?) of our aircraft are already paid for. Depending on the airplane, that might push the total cost over 3x.

 

[Dr. O]

Then there is our local pilot who just traded his 3 year old Corvallis for a spanking new Meridian.
I bet his 2-3 times factor is is getting a D&C.

 

[Ted]

I find fuel is about 30-40% of total costs in the Axtec and 310. That includes MX, insurance, overhauls, and upgrades for ~200 hours per year flying.

 

[JOhnH]

The largest factor is the number of hours you fly, since that is variable.
Hangar and insurance costs are fixed. Annuals generally have a predictable base price although repairs can vary. If you only fly a few hours, then your fuel cost will be a small percentage of total.

 

[steingar]

I stopped worrying about it. I figured all this out once, and swore a solemn oath never to do so again.

 

[JOhnH]

I stopped worrying about it. I figured all this out once, and swore a solemn oath never to do so again.

I never took the oath. I just never do it any more because it tends to make me rethink whether it is worth it. I just take the liberal view and pay whatever it costs because I want it and it makes me (and my wife) happy.

 

[Apache123]

For me:

At $6.00/gal 100LL (it's easily lower by $0.50 but I use this as an XC average) and $6.00/qt oil it costs me roughly $80/hr to fly.

Annual inspection cost is about $2,000, squawks and discrepancies will typically cost about $1,000 to $2,000 to fix, Hangar is $4,200/yr, insurance about $1,000/yr.

This doesn't include the every few years big ADs or potential for overhauls. The only thing here is that to rent a twin in most places would cost quite a bit -- granted the Apache is slower than many many singles.

If I bought my plane, flew it for a year, then sold it with a fresh annual at the same price I bought it, I would break even in very few hours renting (the equivalent twin at most places) a Seminole. The longer I hold onto the plane the more I have to fly it or the maintenance is going to eat me. =D

 

[Tony_Scarpelli]

Then there is our local pilot who just traded his 3 year old Corvallis for a spanking new Meridian.
I bet his 2-3 times factor is is getting a D&C.

I don't know at 40 gallons an hour at $6 that is almost $250 fuel- so $500 per hour total costs he has pretty good room for overhead costs.

Actually if we are ignoring cost of the airplane, payments and interest, I think the Meridian costs would be less than 2x.

 

[Fearless Tower]

I stopped worrying about it. I figured all this out once, and swore a solemn oath never to do so again.

I don't always agree with you, but on this point I must say that you are a very wise man indeed!

 

[wabower]

I track the costs in order to know the current level of expense but more to know how much money will be freed up if things change and I decide to dump the plane. I know the hourly costs don't mean squat since they vary wildly depending on usage, so concentrate more on the budget numbers/yr.

I don't always agree with you, but on this point I must say that you are a very wise man indeed!

 

[Henning]

Hi Guys,

Used to hear that total cost of ownership per hour works out to about 2-3 times fuel cost. Is that true today with fuel being so expensive?

I ran some calculations and I find that my total annual, maintenance, insurance, hangar rent and fuel assuming flying only 50 hrs a year works out to about 2-2.2x fuel. I figure my costs at about $160-180 per hour. This does not calculate any reserves, payments or cost and depreciation of the aircraft just the fixed cost and operating costs for 50 hrs.

It costs me about $8000 to fly only 50 hrs. Above this and the hourly cost starts to come down as the insurance, inspection and hangar are fixed at about $3800 per year.

No, it's no longer an effective ROT, closer to even.