Truck Depreciation Calculator
Calculate annual and monthly truck depreciation using straight-line method, plus depreciation per mile for cost analysis.
Results
Visualization
How It Works
Depreciation is a hidden cost that many owner-operators overlook. A $150,000 truck that sells for $30,000 after 7 years has lost $120,000 in value — roughly $17,100 per year or $0.14 per mile. Understanding depreciation helps you set accurate rates and plan for truck replacement.
The Formula
Monthly Depreciation = Annual / 12
Depreciation Per Mile = Annual / Annual Miles
Variables
- Purchase Price — Original cost of the truck including any dealer fees
- Salvage Value — Expected resale or trade-in value at end of useful life
- Useful Life — Number of years you plan to operate the truck before selling
- Annual Miles — Average miles driven per year used to calculate per-mile depreciation
Worked Example
A truck purchased for $150,000 with a salvage value of $30,000 over 7 years: Depreciable amount = $120,000. Annual depreciation = $120,000 / 7 = $17,143. At 120,000 miles/year, depreciation per mile = $0.143.
Practical Tips
- New Class 8 trucks lose 20-30% of their value in the first two years, then depreciation slows.
- Well-maintained trucks with clean service records retain 10-20% more resale value.
- Consider Section 179 deduction which allows you to deduct the full purchase price in year one for tax purposes.
- Lower-mileage trucks depreciate less per year but more per mile since fixed depreciation is spread over fewer miles.
- Factor depreciation into your per-mile rate to ensure you can afford a replacement truck when the time comes.
Frequently Asked Questions
How fast do semi trucks depreciate?
New semi trucks typically lose 20-30% of value in the first two years, then about 10-15% per year after that. A $160,000 truck is often worth $90,000 to $110,000 at year 3 and $40,000 to $60,000 at year 7.
What is the useful life of a semi truck?
Most owner-operators plan for 5 to 10 years of useful life or 500,000 to 1,000,000 miles. For tax purposes, the IRS classifies heavy trucks with a 5-year MACRS depreciation schedule.
Should I buy new or used to minimize depreciation?
Used trucks (2-3 years old) avoid the steepest depreciation curve. A truck that cost $160,000 new might sell for $110,000 at 2 years old but still have 70-80% of its useful life remaining.
Can I write off truck depreciation on taxes?
Yes. You can use Section 179 to deduct the full purchase price in the year of purchase (up to limits), or use MACRS depreciation over 5 years. Consult a tax professional for the best strategy.
What affects truck resale value the most?
Mileage, engine condition, service history, body condition, and brand reputation have the biggest impact. Trucks with complete maintenance records and no accident history sell for 15-25% more.