Broker Commission & FET Calculator
Gross charter price → net to operator, FET breakdown, and empty-leg floor. 26 U.S.C. § 4261. Free, nothing stored.
FET rates: 7.5% air transportation + $4.80/person/segment (2024). Verify current rates with IRS Publication 510. Not tax advice — consult your accountant for remittance obligations.
Frequently asked
What is the Federal Excise Tax (FET) on charter flights?
Under 26 U.S.C. § 4261, commercial air transportation is subject to a 7.5% FET on the amount paid for air transportation, plus a domestic segment fee of $4.80 per person per flight segment (2024 rate). FET applies to the transportation amount — when a charter price includes FET, the taxable base is back-calculated by dividing by 1.075. International departures are taxed at a different rate.
Who is responsible for collecting and remitting FET?
The air carrier (the Part 135 certificate holder) is responsible for collecting FET from the customer and remitting it to the IRS quarterly using Form 720. Brokers who purchase block time or hold-open agreements may also have FET obligations depending on the structure of the transaction. Consult a tax professional familiar with aviation excise taxes.
What is a typical broker commission range for wholesale charter?
Retail charter brokers typically charge 10–20% of the gross charter price, though net pricing arrangements (where the operator quotes net and the broker adds their markup on top) are also common. Wholesale arrangements between large operators and flotillas can be lower. This calculator models the gross-minus-commission structure.
How should I price an empty leg?
There is no FAA-mandated formula for empty-leg pricing. Common industry practice is to floor a ferry leg at 50–60% of the equivalent revenue-direction pricing — enough to cover fuel and direct operating costs with some contribution to fixed costs. Pricing below direct variable cost (fuel + maintenance reserves) erodes margin; pricing too high leaves the leg unfilled. This calculator shows both the 50% and 60% floor relative to the net transport component.
Clearspar computes real per-trip margin on every quote
Actual fuel cost + FBO fees + FET + commission = real margin per leg, not a flat surcharge. Know what you made before the trip flies, not after the invoice clears.