This budgeting tool will calculate the monthly amount you need to set aside to pay cash to replace those assets that wear out or become obsolete.
Plus, to make you fully aware of what you are giving up in exchange for owning assets that wear out, the calculator also estimates the opportunity costs created by depreciation expenses.
Being fully aware of an asset's opportunity costs in advance of actually purchasing it can also help you avoid making purchases that leave you with buyer's remorse.
But remember, depreciation expense is just one of the many costs of ownership. Others costs of ownership include:
- And more
To calculate the combined opportunity cost of all ownership expenses, check out the Time Value of Money Calculator.