📉 Car Depreciation Calculator
Enter a purchase price, how long you'll own the car, and an annual depreciation rate to estimate its future value, the total value lost, and a year-by-year schedule.
💰 Price, Years & Rate
What is a Car Depreciation Calculator?
Depreciation is usually the single biggest cost of owning a car — bigger than fuel, insurance, or maintenance — yet it's invisible until you sell. This tool puts a number on it, applying a compound annual rate to your purchase price so you can see what the car is likely to be worth after a few years and how much value it sheds along the way.
Use it to compare keeping versus trading, to judge whether a model holds value, or to time a sale. The schedule is an estimate for planning — real resale value depends on mileage, condition, and the market when you actually sell.
❓ Frequently Asked Questions
How fast does a new car depreciate?
A typical new car loses a big chunk of value the moment it's driven off the lot and then sheds roughly 15% of its value each year, so many vehicles are worth around half their sticker price after five years. The default 15% annual rate here reflects that broad average, but you can raise or lower it to match a specific make and model.
How does the calculator work out future value?
It applies the annual rate as compound decline: value after the period equals the purchase price multiplied by (1 minus the rate) raised to the number of years. That mirrors how depreciation actually behaves — a percentage of a shrinking balance each year — and produces the year-by-year schedule shown below the summary.
Why do some cars hold value better than others?
Reliability, brand reputation, demand, trim and options, mileage, and condition all move resale value. Trucks, certain SUVs, and sought-after models often depreciate more slowly, while luxury sedans and EVs with older battery tech can fall faster. Adjust the annual rate to reflect the specific car you're modelling.
Can I rely on these figures for resale?
Treat them as a planning guide, not an appraisal. These are estimates for planning; actual resale value varies by make, model, mileage, condition, demand, and market timing. For a real number, check current listings and a valuation service for your exact vehicle.