1. What Is Depreciation Per Mile?

Depreciation per mile is a financial metric that calculates how much value a vehicle loses for each mile driven. It helps car owners understand the true cost of vehicle ownership beyond just fuel and maintenance expenses.

2. How Does The Calculator Work?

The calculator uses a simple formula:

Where:

• Depreciation Rate — The annual dollar amount your vehicle loses in value
• Average Miles Per Year — The typical number of miles you drive annually

Explanation: This calculation distributes your vehicle's annual depreciation cost across the miles you drive, giving you a per-mile cost of ownership.

3. Importance Of Calculating Depreciation Per Mile

Details: Understanding depreciation per mile helps in making informed decisions about vehicle usage, budgeting for transportation costs, and determining the true cost of long trips or commutes.

4. Using The Calculator

Tips: Enter your vehicle's annual depreciation amount (typically calculated as (purchase price - expected resale value) ÷ years of ownership) and your average annual mileage. Both values must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate my vehicle's annual depreciation rate?
A: Subtract your vehicle's expected resale value from its purchase price, then divide by the number of years you plan to own it.

Q2: Does depreciation per mile vary by vehicle type?
A: Yes, luxury vehicles and trucks typically depreciate faster than economy cars, resulting in higher per-mile depreciation costs.

Q3: How does mileage affect vehicle depreciation?
A: Higher mileage generally increases depreciation, but the relationship isn't linear. The first few thousand miles typically cause the most significant depreciation.

Q4: Should I include maintenance costs in this calculation?
A: No, this calculator only measures depreciation. For a complete cost-per-mile analysis, you should also factor in fuel, insurance, maintenance, and repairs.

Q5: How accurate is this calculation for electric vehicles?
A: EVs may have different depreciation patterns due to battery degradation. Consult EV-specific depreciation guides for more accurate estimates.