Car Depreciation Calculator
A car's value year by year at the depreciation rate you enter, with an optional steeper first year, and how much it has lost by the age you choose.
Result…
How it's calculated
Value after year 1 = price × (1 − first-year rate) Value after n years = value after year 1 × (1 − yearly rate)^(n − 1) Total loss = price − value; share lost = loss ÷ price × 100
Cars usually lose value fastest when new and then more slowly, which a fixed percentage a year captures: each year takes the same share of what is left, not the same amount. Enter your own rate, from asking prices of similar used cars, and an optional higher first-year rate. No typical rates are built in, because they vary a lot by car and market.
Your numbers, step by step
About the Car Depreciation calculator
This car depreciation calculator estimates what a car is worth after each year you own it. Enter the purchase price and the share of its value you expect it to lose each year, and, if you like, a higher rate for the first year, when new cars often drop most. Each year takes the same percentage of whatever value is left, so the loss in money is largest early on and smaller later. The calculator lists the value and the loss year by year up to the age you choose, then gives the total loss, the share of the price lost and the average loss per year. No typical rates are built in, because they vary widely by model, mileage, condition and market. A good way to pick your rate is to compare asking prices for the same car at different ages where you live.
How to use it
- Enter the “Purchase price” of the car.
- Enter your “Yearly depreciation” rate, for example from prices of similar used cars.
- Under “First year”, choose “Its own rate” and enter the “First-year depreciation” if you expect a bigger first drop.
- Enter the “Age of the car” in years that you want a value for.
- Read the value at that age, the total loss and the year-by-year list in the working.
Worked example
A car bought for 30,000 loses 25% in its first year and 15% a year after that. After year 1 it is worth 30,000 × (1 − 25%) = 22,500, a first-year loss of 7,500. After 5 years it is worth 22,500 × 0.85^4 = 11,745.14. The total loss is 18,254.86, which is 60.8% of the price, or 3,650.97 a year on average.
Updated
Questions people ask
How do I calculate car depreciation per year?
Multiply the value at the start of the year by the yearly rate to get that year's loss, then subtract it. Repeat with the new value each year, so value after n years = price × (1 − rate)^n.
What depreciation rate should I use for my car?
Look up asking prices for the same model at different ages and mileages in your area, and work out the yearly drop between them. Rates differ a lot by make, model and market, so no single rate fits every car.
Why does a car lose more value in the first year?
A new car becomes a used car as soon as it is sold, so buyers pay less for it straight away. The optional first-year rate lets you model that larger first drop.
Is a fixed percentage the same as straight-line depreciation?
No. A fixed percentage takes the same share of a shrinking value, so the yearly loss falls over time. Straight-line takes the same amount every year; see the straight-line depreciation calculator or the depreciation calculator for asset methods.
Will my car really sell for this amount?
Not necessarily. This is a model built on your rate; the real price depends on mileage, condition, history, demand and the market in your country. Check current listings or a valuation service before you buy or sell.