1. What Is Vehicle Wear And Tear Calculation?

Vehicle wear and tear calculation estimates the cost of vehicle depreciation and maintenance based on distance traveled. This is commonly used for business expense tracking, tax deductions, and reimbursement calculations.

2. How Does The Calculator Work?

The calculator uses the simple formula:

Where:

• \( Distance \) — Distance traveled (miles or kilometers)
• \( Rate \) — Wear rate per unit distance (currency/mile or currency/km)

Explanation: The calculation multiplies the distance traveled by a standard rate to determine the total wear and tear cost.

3. Importance Of Wear And Tear Calculation

Details: Accurate wear and tear calculation is essential for business expense reporting, tax deductions, insurance claims, and fair reimbursement for vehicle usage.

4. Using The Calculator

Tips: Enter the distance traveled in either miles or kilometers, then enter the wear rate per unit. Common rates include the IRS standard mileage rate (e.g., $0.70/mile in 2025).

5. Frequently Asked Questions (FAQ)

Q1: What is the standard IRS mileage rate?
A: The IRS sets annual standard mileage rates for business, medical, and charitable use. For 2025, the business rate is $0.70 per mile.

Q2: Should I use miles or kilometers?
A: Use the unit that matches your vehicle's odometer and your local standard measurement system.

Q3: What expenses does wear and tear cover?
A: Typically includes depreciation, maintenance, repairs, tires, insurance, and registration fees.

Q4: How often should I calculate wear and tear?
A: Regular calculation (monthly or per trip) helps maintain accurate records for business or tax purposes.

Q5: Can I use different rates for different vehicles?
A: Yes, rates may vary based on vehicle type, fuel efficiency, and maintenance costs.