.calculator-container {
max-width: 600px;
margin: 20px auto;
padding: 25px;
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
font-family: Arial, sans-serif;
}
.calculator-title {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
}
.btn-calculate {
display: block;
width: 100%;
padding: 12px;
background-color: #0056b3;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
cursor: pointer;
margin-top: 10px;
}
.btn-calculate:hover {
background-color: #004494;
}
.result-section {
margin-top: 25px;
padding: 15px;
background-color: #fff;
border: 1px solid #ddd;
border-radius: 4px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 15px;
}
.result-row.total {
font-weight: bold;
font-size: 18px;
color: #0056b3;
border-top: 1px solid #eee;
padding-top: 10px;
margin-top: 10px;
}
.article-container {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
font-family: Arial, sans-serif;
color: #333;
}
.article-container h2 {
color: #0056b3;
margin-top: 30px;
}
.article-container h3 {
color: #444;
}
.article-container ul {
margin-bottom: 20px;
}
.disclaimer {
font-size: 12px;
color: #888;
margin-top: 15px;
}
function calculateFixedRate() {
// Get input values
var vehicleMsrp = parseFloat(document.getElementById('vehicleMsrp').value);
var retentionYears = parseFloat(document.getElementById('retentionYears').value);
var residualValuePct = parseFloat(document.getElementById('residualValuePct').value);
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value);
var annualFees = parseFloat(document.getElementById('annualFees').value);
// Validation
if (isNaN(vehicleMsrp) || isNaN(retentionYears) || isNaN(residualValuePct) || isNaN(annualInsurance) || isNaN(annualFees)) {
alert("Please fill in all fields with valid numbers.");
return;
}
if (retentionYears <= 0) {
alert("Retention period must be greater than 0.");
return;
}
// Calculations
// 1. Calculate Depreciation
// Depreciation base = MSRP – Residual Amount
var residualAmount = vehicleMsrp * (residualValuePct / 100);
var depreciableBase = vehicleMsrp – residualAmount;
var monthlyDepreciation = depreciableBase / (retentionYears * 12);
// 2. Calculate Monthly Insurance
var monthlyInsurance = annualInsurance / 12;
// 3. Calculate Monthly Fees
var monthlyFees = annualFees / 12;
// 4. Totals
var totalMonthly = monthlyDepreciation + monthlyInsurance + monthlyFees;
var totalAnnual = totalMonthly * 12;
// Update UI
document.getElementById('resDepreciation').textContent = '$' + monthlyDepreciation.toFixed(2);
document.getElementById('resInsurance').textContent = '$' + monthlyInsurance.toFixed(2);
document.getElementById('resFees').textContent = '$' + monthlyFees.toFixed(2);
document.getElementById('resTotalMonthly').textContent = '$' + totalMonthly.toFixed(2);
document.getElementById('resTotalAnnual').textContent = '$' + totalAnnual.toFixed(2);
// Show result section
document.getElementById('resultSection').style.display = 'block';
}
Motus Fixed Rate Calculator: Optimizing FAVR Reimbursements
The Motus Fixed Rate Calculator is an essential tool for organizations and drivers utilizing a Fixed and Variable Rate (FAVR) reimbursement program. Unlike standard cents-per-mile reimbursement, a FAVR program splits reimbursement into two distinct categories: a fixed monthly payment and a variable per-mile rate.
This calculator specifically focuses on the Fixed Rate portion, which is designed to cover the static costs of vehicle ownership that occur regardless of how many miles are driven. Understanding how this figure is derived is crucial for ensuring fair and tax-free vehicle reimbursements.
What is the Fixed Rate in a FAVR Program?
In a Motus-style FAVR program, the "Fixed Rate" is a monthly lump sum provided to a driver. This payment helps cover expenses that are incurred simply by owning the vehicle and keeping it road-ready, independent of usage.
The primary components of the Fixed Rate include:
- Depreciation: The loss of vehicle value over time based on a standard retention cycle (typically 5-7 years).
- Insurance: The cost of insuring the vehicle to the required business standards in the driver's specific zip code.
- License, Registration, and Taxes: State and local fees required to legally operate the vehicle.
How the Motus Fixed Rate is Calculated
The calculation is highly localized. While the IRS provides a standard mileage rate, FAVR programs like those managed by Motus calculate costs based on localized data. This ensures that a driver in a high-cost area (like San Francisco) receives a higher fixed payment than a driver in a lower-cost area (like rural Ohio), even if they drive the same car.
1. Determining the Standard Vehicle
The program administrator selects a "Standard Vehicle" (e.g., a mid-size sedan priced at $28,000) that represents the type of car required for the job. The calculation starts with this Base MSRP.
2. Calculating Depreciation
Depreciation is calculated by taking the vehicle's MSRP, subtracting the projected residual value (what the car is worth at the end of the cycle), and dividing the difference by the number of months in the retention period.
Formula: (MSRP – Residual Value) / Retention Months
3. Insurance and Fees
Insurance premiums are often the most variable component. The calculator takes the annual premium for the standard vehicle in the driver's garaging zip code and divides it by 12. Similarly, annual personal property taxes and registration fees are annualized and divided into monthly installments.
Why Use a Fixed Rate Approach?
Using a separate Fixed Rate offers several advantages over a flat car allowance or simple mileage reimbursement:
- Tax Efficiency: When calculated correctly under IRS guidelines, FAVR payments are tax-free to the employee.
- Fairness: It accounts for geographic cost disparities in insurance and taxes.
- Accuracy: It separates ownership costs (Fixed) from operating costs (Variable like gas and tires), preventing over- or under-reimbursement during periods of high or low driving activity.
Use the estimator above to determine the projected monthly fixed stipend based on your program's standard vehicle parameters and local cost factors.
Note: This calculator is for estimation purposes only and illustrates the methodology behind FAVR fixed rate calculations. Actual Motus program rates are determined by proprietary data sets and specific organizational parameters.