Car Depreciation Calculator
Estimate how much your car could lose in value over time
using an annual depreciation rate.
Enter the vehicle's purchase price, annual depreciation rate
and number of years in the white box. The orange box shows
your estimated vehicle value and depreciation.
What to calculate next?
Suggested next step Car Affordability Calculator →Check what car purchase could fit your budget.
Other useful calculators
Year-by-Year Depreciation
See how the estimated vehicle value decreases each year based on the depreciation rate entered.
| Year | Vehicle value | Value lost that year | Total depreciation |
|---|
How the Car Depreciation Calculator works
This calculator estimates the future value of a vehicle using a fixed annual depreciation rate.
Each year, the vehicle loses the selected percentage of its value at the start of that year. This means depreciation is calculated on a reducing balance, rather than subtracting the same dollar amount each year.
For example, a $30,000 vehicle depreciating at 15% annually would have an estimated value of $25,500 after one year. In the second year, the 15% depreciation would apply to $25,500 rather than the original $30,000.
Actual depreciation depends on the vehicle's make, model, mileage, age, condition and market demand. This calculator provides an estimate rather than a guaranteed resale value.
How do you calculate a car's value after depreciation?
Under a constant percentage depreciation assumption, each year's estimated value equals the previous year's value multiplied by one minus the annual depreciation rate. For example, a $20,000 car depreciating 15% annually is worth an estimated $17,000 after one year and $14,450 after two years. Actual used-car prices depend on mileage, condition, demand and market conditions.