Vehicle Depreciation Schedule Calculator - Finance and Tax Calculators
The vehicle depreciation schedule calculator provides you and your clients with a snapshot between straight line depreciation and reducing method according to the Australian Tax Offices (ATO) guidelines.
Simply enter the following and the calculator will do the rest:
- Date the Vehicle was purchase
- End of Financial year the vehicle was purchased
- Vehicle purchase price
- Vehicle Depreciation Period (should match the lease agreements term of the loan)
- and finally whether the vehicle was purchased pre or post 10.05.2006.
Depreciation is a term used in accounting, economics and finance to spread the cost of an asset over the span of several years.
Therefore, depreciation is the reduction in the value of an asset used for business purposes during certain amount of time due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. In accounting, depreciation is a term used to describe any method of attributing the historical or purchase cost of an asset across its useful life, roughly corresponding to normal wear and tear.
The recording of depreciation will cause an expense to be recognized, thereby lowering stated profits on the income statement, while the net value of the asset (the portion of the historical cost of the asset that remains to provide future value to the company) will decline on the balance sheet.
There are two type of depreciation formulas when it comes to Vehicle purchase. (Prime Cost depreciation and the diminishing method)
Prime Method (Straight Line)
Straight-line depreciation is the simplest and most-often-used technique, in which the company estimates the salvage value of the asset at the end of the period during which it will be used to generate revenues (useful life) and will expense a portion of original cost in equal increments over that period. The salvage value is an estimate of the value of the asset at the time it will be sold or disposed of; it may be zero or even negative. Salvage value is also known as scrap value or residual value.
Diminishing Method (Decline Balance Method)
Depreciation methods that provide for a higher depreciation charge in the first year of an asset's life and gradually decreasing charges in subsequent years are called accelerated depreciation methods. This may be a more realistic reflection of an asset's actual expected benefit from the use of the asset: many assets are most useful when they are new. One popular accelerated method is the declining-balance method. Under this method the book value is multiplied by a fixed rate.
Our Vehicle Depreciation Schedule Calculator is serviced regularly ensuring that you provide your clients with up to date information. You need not do anything else after our link is placed on your Website as all changes are automatic.
The Vehicle Depreciation Schedule Calculator is offered at an averaged affordable price of $11.00 per month. Or you can package and add this calculator to the Specials offered within our website!
There are 2 Payment Options available under our current Lease Agreement:
- Option 1: 6 monthly Payments
- Option 2: yearly Payments
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The information provided to you in the Vehicle Depreciation Schedule Calculator does not constitute “personal advice” for any purpose. The Vehicle Depreciation Schedule Calculator is provided to you as an information service only and it should not be relied upon as a substitute for financial, home loan or other professional advice. The information does not take the investment objectives, financial situation and particular needs of any particular person into account. It is not to be construed as financial advice or a recommendation of any financial products, including home loans. Before making an investment or home loan decision on the basis of the information provided by the Vehicle Depreciation Schedule Calculator, you need to consider whether the information is appropriate in light of your particular investment or home loan needs. The Vehicle Depreciation Schedule Calculator has been developed by AFC Online. AFC Online is responsible for maintaining and updating the Vehicle Depreciation Schedule Calculator. For any further enquiries you can contact us directly and one of our customer care consultants will be more than happy to assist you.