Jaken Aviation

Engine Overhaul Costs and When to Start Planning

Aircraft engine overhaul costs represent the largest single maintenance expense for piston aircraft owners. Understanding airplane engine rebuild costs and TBO planning prevents financial surprises and enables smart budgeting decisions.

TBO and When to Overhaul

Time Between Overhaul (TBO) Guidelines:

  • Lycoming O-360 (Cessna 172): 2,000 hours TBO
  • Lycoming IO-360 (Piper Arrow): 2,000 hours TBO
  • Lycoming IO-540 (Bonanza): 2,000 hours TBO
  • Continental IO-520 (Bonanza): 1,700 hours TBO
  • Continental IO-550 (Cirrus SR22): 2,000 hours TBO
  • Lycoming TIO-540 (Piper Malibu): 2,000 hours TBO

TBO is Recommendation, Not Requirement:

  • Part 91 operations can fly past TBO legally
  • Engine condition determines overhaul timing
  • Declining compressions signal approaching overhaul
  • Increasing metal in oil analysis
  • Excessive oil consumption (1 quart per 4-5 hours)
  • Insurance may require overhaul beyond certain hours

Review our Ownership Cost Analysis for budgeting.

Overhaul Costs by Engine Type

Popular Four-Cylinder Engines:

  • Lycoming O-320 (150-160 HP): $22,000-$30,000
  • Lycoming O-360 (180 HP): $25,000-$35,000
  • Lycoming IO-360 (200 HP): $28,000-$38,000
  • Continental O-300 (145 HP): $20,000-$28,000
  • Continental IO-360 (200 HP): $27,000-$37,000

Six-Cylinder Engines:

  • Lycoming IO-540 (250-300 HP): $35,000-$50,000
  • Continental IO-520 (285 HP): $38,000-$55,000
  • Continental IO-550 (300-310 HP): $40,000-$58,000
  • Lycoming TIO-540 (310 HP turbo): $45,000-$65,000

Cost Variables:

  • Factory overhaul vs field overhaul (factory 20-30% more)
  • Additional repairs discovered during teardown
  • Parts availability and pricing
  • Shop labor rates ($85-$150/hour)
  • Geographic location

Overhaul vs Top Overhaul

Major Overhaul (Complete):

  • Complete engine disassembly
  • All components inspected, measured, replaced as needed
  • Crankshaft inspection and possible regrinding
  • Case inspection for cracks
  • All new bearings, gaskets, seals
  • Cylinders overhauled or exchanged
  • Accessories overhauled (mags, fuel pump, etc.)
  • Resets TBO to zero hours
  • Cost: Full overhaul price

Top Overhaul (Cylinders Only):

  • Cylinders removed and overhauled
  • Pistons, rings, valves replaced
  • Lower engine not disassembled
  • Does NOT reset TBO
  • Cost: $3,000-$8,000 per cylinder
  • Typical four-cylinder top: $12,000-$32,000
  • Buys time but not equivalent to major

When Top Overhaul Makes Sense:

  • Engine at mid-time with cylinder issues
  • Crankcase and internals still healthy
  • Plan to fly 200-500 more hours before major
  • Budget constraints prevent full overhaul
  • Aircraft value doesn't justify full overhaul

Setting Aside Engine Reserves

Proactive reserve planning prevents financial crisis at engine TBO.

Hourly Reserve Calculation:

  • Example: $30,000 overhaul ÷ 2,000 TBO = $15/hour
  • Cessna 172 (O-360): $15-$18/hour reserve
  • Cirrus SR22 (IO-550): $20-$30/hour reserve
  • Bonanza (IO-520): $22-$32/hour reserve
  • Set aside every flight hour

Reserve Fund Strategies:

  • Dedicated savings account earning interest
  • Invest conservatively (avoid risk)
  • Start from day one of ownership
  • Don't raid for other expenses
  • Build cushion beyond TBO amount

Monthly Reserve Approach:

  • Example: Fly 75 hours/year × $15/hour = $1,125
  • Divide by 12 months = $94/month
  • Include in fixed monthly costs
  • Adjust if flying more/less than projected

Financing Engine Overhaul

Several options exist for financing major engine work when reserves insufficient.

Financing Options:

  • Aircraft refinance: Cash-out refinance including engine
  • Personal loan: Unsecured loan for engine work
  • Home equity: HELOC or home equity loan
  • Shop financing: Some overhaul shops offer payment plans
  • Credit cards: Last resort, high interest

Aircraft Refinance for Engine:

  • Best option if equity available
  • Lower rates than unsecured loans (6-9% typical)
  • Can finance 80% of aircraft value including engine
  • Extends payment over 10-20 years
  • Example: $30K overhaul at 7% over 10 years = $348/month

Reference our Engine Overhaul Financing Guide for details.

Choosing Overhaul Shop

Shop Options:

  • Factory overhaul: Lycoming, Continental facilities
  • Major shop: Penn Yan, Zephyr, Western Skyways
  • Local A&P: Field overhaul by experienced mechanic

Factory Overhaul Pros/Cons:

  • Pros: Zero-time designation, warranty, factory standards
  • Cons: Most expensive, longer lead time
  • Cost premium: 20-30% over field overhaul

Field Overhaul Pros/Cons:

  • Pros: Lower cost, flexibility, faster turnaround
  • Cons: "Overhauled" not "Zero-time", quality varies
  • Critical: Choose experienced, reputable shop

Evaluation Criteria:

  • Specific engine experience and expertise
  • References from recent customers
  • Warranty coverage and terms
  • Turnaround time estimates
  • Parts quality (new vs serviceable)
  • Shop certifications and ratings

Run-Out Engines: Flying Past TBO

When to Consider Run-Out:

  • Engine running strong with good compressions
  • Oil consumption normal
  • Metal analysis shows low/stable levels
  • No insurance restrictions
  • Not planning to sell soon (value impact)

Monitoring Run-Out Engine:

  • Compressions every 50-100 hours
  • Oil analysis every 25-50 hours
  • Visual inspection at every oil change
  • Monitor oil consumption trends
  • Be prepared for emergency overhaul
  • Maintain adequate reserves

Resale Impact:

  • Engine past TBO reduces aircraft value
  • Buyers discount heavily for run-out engine
  • May need to reduce price $20K-$40K
  • Smaller buyer pool for high-time engines

Budgeting Timeline Example

Scenario: Cessna 172 with 1,200 SMOH

  • Engine: Lycoming O-360, 2,000 TBO
  • Remaining time: 800 hours to TBO
  • Annual flying: 75 hours/year
  • Years to TBO: 800 ÷ 75 = 10.6 years
  • Overhaul cost: $30,000 estimated
  • Hourly reserve: $30,000 ÷ 800 = $37.50/hour
  • Monthly reserve: 75 ÷ 12 × $37.50 = $234/month

Reserve Growth:

  • Year 1: $2,813 (75 hours × $37.50)
  • Year 5: $14,063 total saved
  • Year 10.6: $30,000 at TBO
  • Adjust reserve rate if costs increase

Finance Your Engine Overhaul

Jaken Aviation provides aircraft refinancing options to fund engine overhauls when reserves fall short. Competitive rates and flexible terms available.

Get Financing Quote

Frequently Asked Questions

How much does it cost to overhaul an aircraft engine?

Four-cylinder engines: $22,000-$38,000. Six-cylinder engines: $35,000-$65,000. Costs vary by engine model, overhaul shop (factory vs field), and additional repairs discovered. Factor 20-30% premium for factory overhaul over field overhaul.

When should I overhaul my aircraft engine?

Manufacturer TBO is guideline (typically 1,700-2,000 hours). Part 91 operators can legally exceed TBO if engine healthy. Consider overhaul when compressions decline, oil consumption increases, or metal appears in oil analysis regardless of hours.

How much should I save per flight hour for engine overhaul?

Calculate: Estimated overhaul cost ÷ TBO hours = hourly reserve. Example: $30,000 overhaul ÷ 2,000 TBO = $15/hour. Typical range: $15-$30/hour depending on engine. Start reserving from day one of ownership.

Should I do field overhaul or factory overhaul?

Factory overhaul costs 20-30% more but provides zero-time designation and factory warranty. Field overhaul by reputable shop offers significant savings with "overhauled" designation. Choose based on budget, aircraft value, and resale plans.

Can I finance an engine overhaul?

Yes. Best option: Aircraft refinance including engine work (6-9% rates). Alternatives: personal loan, home equity, shop payment plans. Avoid credit cards due to high interest. Plan 10-20 year term for manageable monthly payments.