Car Depreciation Calculator

Many vehicles lose the most value in the first year, often around 15 to 20 percent, then settle into a steadier annual decline. This tool applies one average rate to the remaining value each year.

Fifteen percent per year is a common average, but it varies widely by make, model, mileage and condition. Reliable, in-demand models hold value better and depreciate more slowly, so lower the rate for those.

It is reducing balance. The rate is applied to whatever value remains at the start of each year, not to the original price, so the dollar loss shrinks over time even though the percentage stays the same.

Current value equals the purchase price times one minus the rate, raised to the number of years. Total depreciation is the purchase price minus that current value, and the percent lost is that loss over the purchase price.

A car loses its new-car premium the moment it is sold and registered. A single flat rate smooths that cliff out, so this estimate can understate the very first year and slightly overstate later ones.

Yes. Enter a decimal number of years, such as 1.5, and the formula handles the fraction. This is useful for estimating value at trade-in time partway through a year of ownership.

No. It estimates only the decline in the vehicle's market value. Loan interest, sales tax, registration and insurance are separate costs of ownership that this tool does not touch.

Adjust the annual rate to match. Some electric and luxury models have depreciated faster than average in recent years, so try a higher rate, while sought-after trucks and hybrids may warrant a lower one.

Yes. Every figure is computed in your browser with no upload, so your price and ownership details stay on your device and the calculator keeps working with no connection.