Car Depreciation Calculator
Project what a vehicle will be worth after any number of years.
Please note: Estimates for planning only. Real fuel economy, depreciation, insurance and lease terms vary widely by vehicle, region and driving style. Confirm figures against a dealer quote or your own records before relying on them.
What the Car Depreciation Calculator does
A car loses value on a compounding curve, not a straight line. The first year takes roughly a fifth off, and each year after removes a similar percentage of whatever is left — so the absolute loss shrinks every year while the percentage stays broadly constant.
Formula
Value after 1 year = Price × (1 − First year rate)Value after n years = Price × (1 − First year rate) × (1 − Later rate)^(n−1)Total depreciation = Price − Final value
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Purchase price | selected currency | Yes | Accepts more than 0. |
| Years of ownership | number | Yes | Accepts 0 or more, up to 30. |
| Depreciation pattern | one of 2 options | Yes | — |
| First year depreciation | % | In some modes | Shown Depreciation pattern is Typical curve — steep first year, then steady. |
| Depreciation each year after | % | In some modes | Shown Depreciation pattern is Typical curve — steep first year, then steady. |
| Annual depreciation rate | % | In some modes | Shown Depreciation pattern is Flat annual rate. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Depreciation pattern and Currency.
- Enter Purchase price and Years of ownership.
- Fill in the remaining inputs the form shows for your choice.
- Select Calculate.
Worked example
A $35,000 car kept 5 years, losing 20% in year one and 15% a year after.
- Price
- $35,000
- Years
- 5
- First year
- 20%
- Later
- 15%
35,000 × 0.80 × 0.85⁴ = $14,616. That is $20,384 of depreciation, about $4,077 a year.
Frequently asked questions
Why is the first year so much worse?
A car stops being new the moment it is registered, and the new-car premium disappears with it. That single transition typically costs a fifth of the purchase price.
Is it cheaper to buy used?
On depreciation alone, yes — a three year old car has already shed roughly half its value, so your own loss over the next few years is far smaller in absolute terms.