Car Depreciation Calculator
Enter the purchase price and how many years out you want to project — the estimate updates as you type, and the link in your address bar always reflects your numbers.
How this calculator works
This tool applies a simplified, commonly-cited standard depreciation curve: a car loses about 20% of its value in the first year, then roughly 10% of its remaining value in each year after that, compounding on the shrinking balance. In formula terms: value = price × 0.80 × 0.90(years − 1). This is a general pattern for illustration and rough planning — it is not specific to any make or model, and your actual car's value can differ substantially. See the FAQ below for the honest caveats.
Worked example
On a $35,000 car, the curve plays out like this:
- Year 1: $28,000 (20.00% lost, $7,000)
- Year 3: $22,680 (35.20% lost, $12,320)
- Year 5 (default): $18,370.80 (47.51% lost, $16,629.20)
Notice the value drops fastest in year one, then slows: the vehicle loses $7,000 in year one alone, but only about $2,520 between years two and three. Change the price or years input above to see your own numbers.
Frequently asked questions
Is this accurate for my specific car?
No — treat it as a rough guide, not a prediction for your exact vehicle. Real depreciation varies enormously by brand, model, mileage, condition, and market demand at the time you sell. This calculator applies one commonly-cited general pattern (a bigger drop in year one, then a smaller annual drop after) purely for illustration and rough planning, not a valuation of your car.
Why is the first year the biggest drop?
A new car loses its "new car" premium the moment it's driven off the lot and legally becomes a used vehicle — even with zero miles added beyond the test drive. That first-year drop is a well-known, widely observed pattern in the used-car market, which is why this calculator models it separately from the smaller drops in later years.
Do some brands hold value better than others?
Yes. It's well established in the auto industry that resale value varies significantly by brand and model — some vehicles are known for holding value much better than the general pattern shown here, others depreciate faster. This tool doesn't model individual brands; check resale-value data for your specific make and model for a more accurate picture.
How does mileage affect depreciation?
Higher-than-average mileage typically accelerates depreciation beyond the baseline curve shown here, since buyers pay less for a vehicle with more wear and a shorter remaining lifespan. A car driven well below average mileage for its age often holds value a bit better than this curve suggests. Mileage isn't an input to this calculator — factor it in yourself as a caveat on the estimate.