Car Depreciation Calculator
Find out how much your car loses in value each year and its estimated resale price.
Typical rates: New cars 15-20%, used cars 10-15%, luxury 20-25%
Depreciation Results
📊 Depreciation Schedule
💡 Key Insights
Year 1 Loss: $3750.00 (15%)
Annual Loss (Avg): $2781.47 per year
Resale Price: $11092.63 after 5.0 years
Depreciation Model: Compound annual depreciation
🔍 Factors Affecting Depreciation
Older cars depreciate faster
Higher mileage = higher depreciation
Luxury brands depreciate faster
Well-maintained cars retain more value
Popular models depreciate slower
💡 Depreciation Tips
- • New cars lose 20% in first year, 50% by year 5
- • Certified pre-owned cars depreciate slower
- • Maintenance records increase resale value
- • Clean title (no accidents) preserves value
- • Popular colors have lower depreciation
- • Buy used cars after first year for best value
Formula
Value After n Years = P × (1 − r)^n
Where: P = Initial Price, r = Annual Rate (as decimal), n = Years
How it works
Value after n years = P × (1 − r)^n Where: P = Initial vehicle price r = Annual depreciation rate (as decimal) n = Number of years Example: Car price: $25,000 Rate: 15% annually After 5 years: $25,000 × (1 − 0.15)^5 = $25,000 × 0.4437 = $11,093 Typical Depreciation Rates: New cars: 15-20% first year, then 10-15% annually Luxury cars: 20-25% annually Used cars (5+ years): 5-10% annually Electric vehicles: 15-20% annually
The car depreciation calculator estimates how much a vehicle loses in value over time. Enter the initial price, annual depreciation rate, and number of years to see the resale value and total depreciation. Includes depreciation schedule and factors affecting vehicle value.
Why this matters
Understanding depreciation helps you make informed vehicle purchase decisions and plan long-term ownership costs. Some vehicles retain value better than others—knowing the rate helps choose cost-effective models. Used car buyers can estimate realistic resale expectations.
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Learn more
The complete guide to car depreciation calculator
Formulas, examples, and tips explained in plain English