The aviation sector is rapidly evolving with more electric propulsion systems and a variety of new technologies of vertical take-off and landing manned and unmanned aerial vehicles. Community noise impact is one of the main barriers for the wider adoption of these new vehicles. Within the framework of a perception-driven engineering approach, this paper investigates the relationship between sound quality and first order physical parameters in rotor systems to aid design. Three case studies are considered: (i) contra-rotating versus single rotor systems, (ii) varying blade diameter and thrust in both contra-rotating and single rotor systems, and (iii) varying rotor–rotor axial spacing in contra-rotating systems. The outcomes of a listening experiment, where participants assessed a series of sound stimuli with varying design parameters, allow a better understanding of the annoyance induced by rotor noise. Further to this, a psychoacoustic annoyance model optimised for rotor noise has been formulated. The model includes a novel psychoacoustic function to account for the perceptual effect of impulsiveness. The significance of the proposed model lies in the quantification of the effects of psychoacoustic factors, such as loudness as the dominant factor, and also tonality, high frequency content, temporal fluctuations, and impulsiveness on rotor noise annoyance.