Car Depreciation Calculator
Cars are depreciating assets. This calculator shows your vehicle's estimated value year by year using standard depreciation curves, helping you decide the best time to sell or trade in.
Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.
Car Depreciation Calculator
Vehicle Value Over Time
š Formula & Method
Declining Balance Depreciation
The declining balance method applies a fixed percentage to the remaining value each year, mirroring real-world car depreciation patterns.
š How to Use
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1
Enter purchase price and current car age.
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2
Set year 1 and ongoing depreciation rates.
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3
Select years to project.
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4
See year-by-year values and total depreciation.
How Fast Do Cars Depreciate?
The average new car loses around 20% of its value in the first year and 15% per year after that. After 5 years, a new car is typically worth 40-50% of its original price. Luxury brands, sports cars, and EVs can depreciate faster; some brands (Toyota, Subaru, Honda) retain value better than average.
Buying a 2ā3-year-old used car lets someone else absorb the steepest depreciation. For car ownership cost planning, depreciation is usually the largest expense ā often larger than fuel over the life of the vehicle.
š¬ Methodology & Accuracy
Formula: Uses the standard mathematical formula shown in the Formula & Method section above. All computations run client-side in your browser ā no data is sent to our servers.
Data sources: Tax bands, contribution limits and regulatory rates are taken from official US (IRS, SSA) and UK (HMRC, gov.uk) publications for the current tax year, and updated when bands change.
Last reviewed: January 2025 · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.
For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change ā always verify current figures with official sources.