Car Depreciation Calculator
Estimate how much a car loses in value year by year.
About the Car Depreciation Calculator
Enter the purchase price, the first-year depreciation rate and the yearly rate after that, and how many years to show. The calculator gives the car's value each year, how much it loses and the total lost.
New cars typically lose the most in the first year (often around 15–25%) and then roughly 10–20% a year, depending on make, mileage, condition and demand. Adjust the rates to match used prices for your model from a pricing guide.
The formula
Value after year n = price × (1 − r₁) × (1 − r)ⁿ⁻¹
Worked example
A 35,000 car losing 20% in year 1, then 15% a year
- After year 1: 28,000
- After year 2: 23,800; year 3: 20,230
- After 5 years: 14,616, 58% lost
Questions people ask
Which cars hold value best?
Popular, reliable models and trucks usually depreciate more slowly.
How can I reduce depreciation?
Buy nearly new, keep mileage low and maintain service records.
Is depreciation a running cost?
Yes, usually the biggest one for a new car; divide the loss by the miles you drive to see it per mile.