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Car Depreciation Calculator
Project what a car will be worth in the years ahead. Enter the purchase price, how much it loses in the first year and the rate it loses each year after that, and see its value year by year with the total depreciation.
- Total depreciation
- $20,383.83
- Share of value lost
- 58.24%
- Average loss per year
- $4,076.77
- Average loss per month
- $339.73
Value by year
| Year | Value at start | Depreciation | Value at end |
|---|
Saved setups
Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.
Your recent calculations
Results you calculate here are kept on this device so you can come back to them.
Formula
How to use it
- Enter what you paid, or expect to pay, for the car.
- Enter the first-year depreciation rate.
- Enter the rate for each following year.
- Enter how long you will keep the car and read the table.
Worked examples
A $30,000 car losing 20% in year one and 15% a year after, kept for 5 years
- Value at the end
- $12,528.15
- Total depreciation
- $17,471.85
- Share of value lost
- 58.24%
- Average loss per year
- $3,494.37
A $28,000 car losing 25% in year one and 12% a year after, kept for 3 years
- Value at the end
- $16,262.40
- Total depreciation
- $11,737.60
- Share of value lost
- 41.92%
- Average loss per year
- $3,912.53
Choosing the rates
A common rule of thumb is that a new car loses around 20% of its value in the first year and roughly 15% of its remaining value each year after, leaving about 40% of the original price after five years. Real figures vary a great deal by make, model, mileage, condition and the state of the used-car market, so treat the defaults as a starting point.
If you are buying used, the steep first year has already happened: set the first-year rate equal to the later-year rate.
Why it matters
Depreciation is usually the largest cost of owning a newer car, larger than fuel or insurance, yet it is invisible until you sell or trade in. Dividing the total depreciation by the miles you will drive gives its cost per mile.
Because each year’s loss is a percentage of a shrinking value, the dollar loss is largest at the start. This is the main financial argument for buying a car that is two or three years old.
Questions people ask
How much does a new car depreciate in 5 years?
At 20% in the first year and 15% a year after, a car loses about 58% of its value in five years. A $30,000 car would be worth about $12,528.
How much value does a car lose in the first year?
Often around 20% for a new car, though it ranges from about 10% to over 30% depending on the model and market conditions.
How do I calculate car depreciation?
Multiply the car’s value by (1 − the yearly rate) for each year. $28,000 less 25% is $21,000 after year one; less 12% is $18,480 after year two; less 12% again is $16,262 after year three.