How to use

1. Enter the initial vehicle purchase price in UAH or your currency.
2. Set the expected salvage or resale value at the end of the operating cycle.
3. Enter the target lifetime mileage and average annual mileage in kilometers.
4. Optionally provide annual maintenance, tire replacement, and insurance budgets.
5. Review the capital depreciation per 1 km, annual asset write-off, and monthly fleet reserve fund.

What is Commercial Fleet Depreciation?

Fleet depreciation represents the gradual write-down of commercial vehicles over their useful service life. Trucks and delivery vehicles experience severe wear, loss of resale value, and rising maintenance expenses.

A fleet depreciation calculator helps fleet managers, logistics companies, and owner-operators determine cost per kilometer, forecast residual asset value, and budget future fleet renewals.

Key Inputs Required for Depreciation Analysis

To accurately determine total vehicle cost of ownership (TCO), consider the following parameters:

• Initial Vehicle Cost — purchase price including transport, custom duties, and upfitting.

• Planned Lifespan & Mileage — expected service years and total operating kilometers before disposal.

• Salvage / Resale Value — projected market value when exiting or auctioning the vehicle.

• Ongoing Maintenance Costs — scheduled servicing, parts replacement, tires, and commercial insurance.

For commercial trucking, calculating depreciation per distance unit (per km or mile) is critical for setting profitable freight rates.

Commercial Truck Depreciation Example

A logistics firm purchases a semi-truck for 2,000,000 UAH with an expected 5-year operational lifecycle and 500,000 UAH salvage value. The vehicle runs 100,000 km annually (500,000 km lifetime).

Depreciable base: 2,000,000 − 500,000 = 1,500,000 UAH. Average annual depreciation equals 300,000 UAH (25,000 UAH/month). Capital depreciation per 1 km equals 3.00 UAH/km.

Why Should Fleets Track Depreciation?

Regular depreciation calculation allows businesses to maintain an adequate capital reserve for truck replacements, establish accurate freight pricing, evaluate new vs. used vehicle purchases, and forecast corporate cash flows.

Depreciation is a major fixed cost component. Complete route cost modeling must also factor in fuel burn, driver wages, toll roads, and dispatch overhead.

Methodology & Calculation Accuracy

The calculator utilizes straight-line and units-of-production (mileage-based) valuation models. Results depend on accurate initial price estimation, realistic resale valuations, and reliable mileage forecasts.

This calculator is designed for financial planning, management accounting, and rate setting. It is not an official tax filing instrument.