Car Depreciation Calculator

See what your car will really be worth — a realistic depreciation curve (steep year one, steady after) shows your estimated value, total loss and a year-by-year breakdown, instantly in your browser.

📖 How it works & FAQ

Purchase price ($)

Years of ownership

Year-1 depreciation (%)

Later years (%/yr)

How the depreciation curve works

New cars don't lose value in a straight line — they fall off a cliff in year one, then glide. This calculator models that curve: it applies your year-1 rate (default 20%) to the purchase price, then compounds the later-years rate (default 15%) on each year's remaining value. A $35,000 car drops to $28,000 after year one, then loses 15% of $28,000 — not of the original price — in year two. The per-year table shows the dollar loss, the value at each year end, and the share of the original price retained. Everything runs in your browser; nothing is uploaded or stored.

Choosing realistic rates

Industry-wide studies consistently put the average new car near a 20% first-year drop and roughly 60% total after five years — which is exactly what the defaults produce. But make and model matter enormously: pickup trucks and Toyotas often lose closer to 10-12% a year, while luxury sedans and many EVs can shed 25% or more in year one. Lower both rates for strong-resale models; raise them for fast-depreciating badges. Buying used? The steep year-1 drop already happened to the first owner, so set the year-1 rate equal to the later-years rate. These figures are estimates only, not professional, financial, tax or legal advice.

How to use it

Enter the purchase price — what you paid or plan to pay for the car.
Set how many years you plan to own it.
Adjust the year-1 and later-years rates to match your model's reputation, or keep the average defaults.
Read the cards for the ending value and total loss, then scan the table to see exactly where the money goes each year.

FAQ

Why does year one lose so much?: The moment a new car is titled it becomes a used car, and dealers must resell it below new-car market price. That instant repricing — not wear — drives the big first-year drop.
Does mileage change the result?: Yes. High annual mileage (15,000+ miles) accelerates depreciation, so bump both rates up a few points if you drive a lot.
Can I use this for business or tax depreciation?: No. Tax depreciation (MACRS, Section 179) follows IRS schedules that have nothing to do with market value. This tool estimates resale value only.
What about EVs?: Many EVs have depreciated faster than average due to rapid tech turnover and new-model price cuts — try 30% for year one and 18-20% for later years.