# How to calculate vehicle depreciation for reimbursement

> Understand how vehicle depreciation affects mileage reimbursement rates.

**Author:** Camila Ribeiro — Field Operations Editor  
**Published:** 2025-08-15  
**Updated:** 2025-08-15  
**URL:** https://quilometragem.com/blog/how-to-calculate-vehicle-depreciation-for-reimbursement

**TL;DR:** Understand how vehicle depreciation affects mileage reimbursement rates.

- Understand how vehicle depreciation affects mileage reimbursement rates.
- Depreciation is an essential component in calculating fair mileage reimbursement rates.
- Vehicles lose value over time and use.
- On average, a car loses 15-20% of value in the first year and about 10-15% annually thereafter.

Depreciation is an essential component in calculating fair mileage reimbursement rates.

Vehicles lose value over time and use.[^rfb-in1700] On average, a car loses 15-20% of value in the first year and about 10-15% annually thereafter. High mileage accelerates this depreciation.

To calculate per-kilometer depreciation, divide expected annual value loss by the number of kilometers you plan to drive. For example: R$ 60,000 car with R$ 9,000/year depreciation and 20,000 km/year = R$ 0.45 per km in depreciation alone.

Add to that fuel, maintenance, insurance, and tax costs to arrive at total reimbursement rate. Serious companies consider all these factors when establishing policies.

Conduct annual rate review, adjusting according to fleet average age and market costs. Outdated rates harm both company (overpaying) and employee (underpaid).

## Frequently asked questions

### How to calculate vehicle depreciation?

Subtract the estimated residual value from the purchase price and divide by useful life in years; typically 20% in year one and 10% thereafter.

### What depreciation rate should I use?

For light vehicles, the tax authority accepts 20% per year (five-year useful life); for heavy vehicles or intensive fleets, higher rates can be justified.

### How to include depreciation in cost per km?

Divide annual depreciation by the total expected mileage for the year and add the result to fuel and maintenance cost per km.

## Sources

- [Receita Federal — Instrução Normativa RFB 1.700/2017 (depreciação)](http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?idAto=81268) — Receita Federal do Brasil (2026-04-28)