Work out your car's total cost of ownership (depreciation + running costs) — the total cost per kilometer driven.
This €/km can be a basis for setting an economically justified rate — see the mileage compensation calculator.
| Step | Formula |
|---|---|
| Depreciation / year | (purchase price − residual value) ÷ years of use |
| Total cost / year | depreciation + annual running costs |
| € / km | total cost / year ÷ annual km |
This is a straight-line depreciation model — in reality cars usually lose value faster in the first years. Estimate the residual value from listings of similar cars after N years.
Running costs are only the ongoing costs (fuel, insurance, servicing). Total cost also accounts for the car's drop in value (depreciation) — so it shows the real total cost of owning the car.
Best to check listings for a similar model, year and mileage on classifieds sites — this gives a realistic market value after N years.
Yes, it's a good reference basis for an "economically justified" rate, which tax law requires when compensating for personal car use for work.
e-Buhalteris helps you track fixed assets, depreciation and transport costs.
Start for free →