Boneyard Tools

Car Depreciation Calculator

Enter your purchase price, an annual depreciation rate and a number of years to estimate the future value of your vehicle and how much value it loses overall.

How to estimate car depreciation

  1. Enter the purchase price of the vehicle.
  2. Enter an annual depreciation rate, with 15 percent as a typical default.
  3. Enter the number of years and read the estimated value and total loss.

Examples

$30,000 car at 15 percent for 5 years

$30,000, 15% per year, 5 years
about $13,311 left, around $16,689 lost

Total loss percentage

same inputs
about 55.6 percent of value gone

Frequently asked questions

How fast does a new car depreciate?

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 each year.

What depreciation rate should I use?

Fifteen percent per year is a common average, but it varies widely by make, model, mileage and condition. Reliable models hold value better and depreciate more slowly.

Why is the first year so heavy in reality?

A car loses its new-car premium the moment it is sold and registered. A flat-rate model smooths that out, so it can understate the very first year of real-world loss.

How is the value calculated?

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

Does this include taxes, fees or financing?

No. It estimates only the decline in the vehicle's market value. Loan interest, taxes and fees are separate costs of ownership.

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