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Car Depreciation Calculator

Estimate how much a car will depreciate over time and its resale value using a declining-balance depreciation rate.

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About the Car Depreciation Calculator

Estimate how much a car's value drops each year and what it might be worth after a given number of years.

How the Car Depreciation Calculator works

Vehicles typically lose value fastest in the first few years and more slowly after — a pattern approximated here with declining-balance depreciation, where the same percentage is applied to the remaining value each year (rather than a flat dollar amount every year). Actual resale value depends heavily on make, model, mileage, condition, and market demand, so treat this as a planning estimate rather than an appraisal.

How to use the Car Depreciation Calculator

  1. Enter the purchase price.
  2. Enter the number of years to project.
  3. Enter (or accept the default) annual depreciation rate.
  4. Press Calculate to see the estimated value, total depreciation, and a year-by-year breakdown.

Tips for the Car Depreciation Calculator

  • New cars typically lose around 20% of their value in the first year alone — buying a 1-2 year old used car can avoid the steepest part of the depreciation curve.

Formula used by the Car Depreciation Calculator

Value after n years = Purchase Price × (1 − Depreciation Rate)ⁿ

Example: Car Depreciation Calculator

A $30,000 car depreciating 15%/year over 5 years

  • Purchase price: $30,000
  • Annual depreciation: 15% (illustrative)
  • Years: 5

Result: Estimated value ≈ $13,311.16 (total depreciation ≈ $16,688.84)

Value = $30,000 × (1 − 0.15)⁵ = $30,000 × 0.4437 ≈ $13,311.16, so the car has lost about $16,688.84 in value over 5 years.

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