Car Depreciation Calculator
See how fast a new car loses value.
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Car Depreciation Calculator by TheCalcTools
How the Car Depreciation Calculator works
Enter the purchase price and your assumed depreciation rates.
The first year usually loses the most; later years lose a smaller percentage of the remaining value.
The estimated value is price × (1 − first-year rate) × (1 − later rate)^(years − 1).
The formula
Worked example
Using the default values shown in the calculator:
| Purchase price | $35000 |
|---|---|
| First-year depreciation | 20 % |
| Depreciation each later year | 15 % |
| Years owned | 5 |
- After year 1: $35,000 × 0.80 = $28,000.
- After 5 years the value is about $14,616, a loss of $20,384 (58.2%).
Result:
| Estimated value | $14,616 |
|---|---|
| Total value lost | $20,384 |
| Share of price lost | 58.2% |
| Average loss per year | $4,077 |
Frequently asked questions
How fast do cars depreciate?
A common rule of thumb is about 20% in the first year and around 15% a year after, but it varies widely by make, mileage and market conditions.
How can I limit depreciation?
Buying a slightly used car shifts the steepest drop to the first owner. Model and condition also matter.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.