Car Depreciation Curve Calculator (Value by Year)
Enter the price and depreciation rates to see the value curve.
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Car Depreciation Curve Calculator (Value by Year) by TheCalcTools
How the Car Depreciation Curve Calculator (Value by Year) works
Cars lose the most value in year one, so the first year uses its own rate.
Each later year multiplies the value by (1 − yearly rate).
Years to half value solves f × g^(n−1) = 0.5.
The formula
Worked example
Using the default values shown in the calculator:
| Purchase price | $35000 |
|---|---|
| First-year depreciation | 20 % |
| Depreciation each later year | 12 % |
- $35,000 with a 20% first-year drop is $28,000 after year 1.
- Then 12% a year: $21,683 after 3 years, $16,791 after 5 and $8,861 after 10. It loses half its value in 4.7 years.
Result:
| Value after year 1 | $28,000 |
|---|---|
| Value after year 2 | $24,640 |
| Value after year 3 | $21,683 |
| Value after year 4 | $19,081 |
| Value after year 5 | $16,791 |
| Value after year 7 | $13,003 |
| Value after year 10 | $8,861 |
| Value lost in 5 years | $18,209 |
| Years to lose half its value | 4.7 years |
Frequently asked questions
How fast do cars depreciate?
A new car often loses about 20% in the first year and 15 to 60% in the first five years, depending on the model.
What affects the rate?
Brand, mileage, condition, fuel type and demand. Used cars one to three years old usually lose value more slowly.
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.