Adobe StockWhere today's starting aircraft loan rates sit next to the 5-year Treasury, prime, SOFR and fed funds, with 30 years of history.
Aircraft loan rates are priced off longer-term benchmarks, most often the 5-year U.S. Treasury yield, plus a spread that reflects the aircraft category, the borrower and the lender. When the 5-year moves, starting rates on new aircraft loans follow, usually within days to weeks.
Your rate is the benchmark plus a spread. The spread is wider for experimental and light sport aircraft than for certified pistons and turbines because fewer lenders compete for them, and it narrows with stronger credit, a larger down payment and a newer aircraft. A move of a quarter point in the 5-year Treasury changes the payment on a $300,000, 20-year loan by about $45 a month.
Rates on this page update automatically. To lock in today's pricing, start with a soft-pull pre-approval, or model your payment with the calculator.
Most aircraft loans are fixed-rate, fully amortizing loans with terms of up to 20 years for certified pistons and turbines. Lenders start from a benchmark that matches how long they expect to hold the loan, most often the 5-year Treasury, then add a spread. The spread reflects the category of aircraft, the borrower's credit and liquidity, the down payment, the age of the aircraft and how the aircraft will be used.
That is why two buyers on the same day can see different rates on the same airplane, and why light sport and experimental aircraft price higher: fewer lenders compete for them, so spreads are wider. A soft-pull pre-approval shows where your own file lands without affecting your credit.
| Rate | Monthly payment on $300,000, 20 years |
|---|---|
| 6.00% | $2,149 |
| 6.50% | $2,237 |
| 7.00% | $2,326 |
| 7.50% | $2,417 |
The 5-year Treasury averaged 6.69% in 1994, fell below 2% for most of the 2010s, bottomed at 0.53% in 2020 and climbed back to about 4% from 2023 through 2025. Aircraft loan rates followed the same path: buyers who financed in 2020 and 2021 locked in rates far below today's, while today's buyers are pricing off a benchmark near the top of its 20-year range. The live reading is shown at the top of this page.
Because rates follow the market, the rate quoted at pre-approval reflects that day's benchmark. If the Treasury moves before you close, your rate can move with it, so ask your lender how and when your rate is locked. If rates fall after you close, refinancing is an option once the savings outweigh the costs; our refinance calculator shows the break-even.
Waiting for lower rates has a cost too: aircraft prices, insurance and availability change while you wait. For many buyers the better move is to buy the right aircraft now at a payment that works, then refinance if rates drop meaningfully.
| Benchmark | Current | 52-week range |
|---|---|---|
| 5-year Treasury | 4.78% | 3.51% – 5.09% |
| 10-year Treasury | 4.96% | 3.97% – 5.31% |
| Bank prime rate | 7.00% | 6.75% – 7.25% |
| SOFR | 3.90% | 3.50% – 4.31% |
| Fed funds | 3.88% | 3.62% – 4.12% |
| Aircraft category | Starting rate |
|---|---|
| Certified piston | 6.39% |
| Turboprop and jet | 6.53% |
| LSA / MOSAIC | 7.16% |
| Experimental / amateur-built | 7.23% |
| Year | 5-year Treasury (annual average) |
|---|---|
| 2025 | 3.92% |
| 2024 | 4.13% |
| 2023 | 4.06% |
| 2022 | 3.00% |
| 2021 | 0.86% |
| 2020 | 0.53% |
| 2019 | 1.95% |
| 2018 | 2.75% |
| 2017 | 1.91% |
| 2016 | 1.33% |
| 2015 | 1.53% |
| 2014 | 1.64% |
| 2013 | 1.17% |
| 2012 | 0.76% |
| 2011 | 1.52% |
| 2010 | 1.93% |
| 2009 | 2.20% |
| 2008 | 2.80% |
| 2007 | 4.43% |
| 2006 | 4.75% |
| 2005 | 4.05% |
| 2004 | 3.43% |
| 2003 | 2.97% |
| 2002 | 3.82% |
| 2001 | 4.56% |
| 2000 | 6.16% |
| 1999 | 5.55% |
| 1998 | 5.15% |
| 1997 | 6.22% |
| 1996 | 6.18% |
| 1995 | 6.38% |
| 1994 | 6.69% |
"I read this data every day. Ask me what it means for the aircraft you are shopping for, your rate or your timing."
Coverage of this data from FLYING and other Firecrown aviation titles.
Most aircraft loans are fixed for a period that matches how long lenders expect to hold them, so lenders price them off a similar-length benchmark, usually the 5-year Treasury, and add a spread.
Lenders typically adjust their rate sheets within days to a few weeks of a sustained move in the 5-year Treasury.
Most fixed-rate aircraft loans are not. Prime matters more for variable-rate lines of credit and some business loans.
Treasury, prime, SOFR and fed funds figures come from the Federal Reserve's H.15 release via FRED and refresh automatically on this page.
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