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We don't need to make rocket science out of this. If you've got a brand new car, the money you need to calculate in for the daily depreciation is what a car rental service would charge you. These companies crunch the numbers very carefully, and milk as much revenue out of a car as they can.

If your car is older, knock a buck to a buck and a quarter off for each year.

Figure that in with your daily take and you will see your true hourly payout.
 

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Rocket science is not required to easily and accurately calculate your depreciation per a mile. All you need is a basic understanding of financial accounting. The method used to calculate depreciation per a mile is called Units of Production. The first step is to determine your Depreciable Base. To figure out your base subtract the purchase price (or current value) of your car from your expected residual value (salvage value). Residual value is what you expect the car to be worth when you sell it. Example: Purchase price of my Uber car is $20,000 with 20k miles on the odometer and I plan on selling it once the odometer hits 120k miles. I expect it to be worth $10,000 at that time so my Depreciable Base is $10,000 ($20,000 - $10,000 = $10,000). After you have determined your Depreciable Base simply divide it by the miles you expect to use. In our example the car had 20k miles when I purchased it and I am selling it once I reach 120k miles so I plan on using it for 100,000 miles (10,000/100,000). My depreciation is $0.10 per mile.
 

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Depreciation figures depend on how well we can predict the future. KBB.com puts the “Private Party Sale” value for my car at $6000. I plan to drive it for 3 more years and put 75,000 miles on it in the meantime. Assuming no value after three years puts depreciation at $6000/75,000 miles, or .08/mile. PRETTY SIMPLE!
 
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