Car Depreciation Calculator
Project what your car will be worth in a few years — and how much value it quietly loses every year you own it.
How much will my car depreciate?
Most cars lose value fastest in year one, then keep shedding a percentage of a shrinking value. On this tool's defaults — a $35,000 car at a 15% annual rate — it's worth about $15,530 after five years, having lost roughly $19,470 (around 56% of its price), with the first year alone accounting for about $5,250.
Your numbers
Value after 5 years
$15,530
Total lost to depreciation
$19,470
Value retained
44.4%
Insight — Depreciation compounds: each year's loss is a percentage of a shrinking value, so the steepest drop is in year one. Buying a 2–3 year-old car lets the first owner absorb that first cliff for you.
What if Years owned changes?
| Years owned | Value after 5 years |
|---|---|
| 3 yrs | $21,494 |
| 5 yrs · now | $15,530 |
| 7 yrs | $11,220 |
| 10 yrs | $6,891 |
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Know your benchmark here, then compare real quotes from several carriers — prices for the same driver vary a lot.
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For context: published vehicle-valuation and depreciation data show a typical new car retaining roughly 40–45% of its sticker price after five years — a 15% annual rate is a realistic middle-of-the-road assumption you can adjust above.
How this calculator works
Depreciation here compounds rather than running in a straight line. Each year the car keeps (1 − rate) of its value, so the dollar loss is largest early and shrinks as the car ages. You enter the purchase price, how many years to project, and an annual depreciation rate; the calculator applies that rate year over year to find the future value, the total lost, and the share of the original price retained.
Formula
Future value = price × (1 − rate)^years. Total lost = price − future value. First-year loss = price × rate.
Worked example
A $35,000 car at 15% per year over 5 years: future value = $35,000 × (0.85)^5 = $35,000 × 0.4437 ≈ $15,530. Total lost = $35,000 − $15,530 = about $19,470, leaving roughly 44% of the price retained. The first year alone drops it to $29,750 — a $5,250 hit.
What affects your result
- →Annual depreciation rate (15–20% is typical for mainstream cars)
- →How many years you hold the car
- →Make and model resale reputation
- →Whether it's a luxury or EV model (often faster) vs a reliable truck or compact (often slower)
- →Mileage and condition, which the rate implicitly absorbs
What this estimate includes
- ✓Compounding loss of market value year over year
- ✓Future resale value after the years you project
- ✓Total dollars lost and percentage retained
- ✓First-year and average annual loss
What it does not include
- ×Fuel, insurance, maintenance and financing (see the total-cost tool)
- ×Sudden market swings (fuel-price shocks, supply shortages)
- ×Accident or title-history damage to resale value
- ×Mileage above or below average for the model
Good to know
Clear, practical answers about the car depreciation calculator.
How fast does a car depreciate?＋
Most new cars lose around 15–20% of their value in the first year and roughly 15% per year after that, leaving them worth about 40% of the original price after five years. Luxury and EV models can depreciate faster; some trucks and reliable compacts hold value better.
Is depreciation compounded or straight-line?＋
Real-world depreciation compounds. Each year's loss is calculated on the car's current value, not the original price — which is why this calculator multiplies the value by (1 − rate) for every year rather than subtracting a flat amount.
How can I lose less money to depreciation?＋
Buy slightly used to skip the first-year cliff, choose models with strong resale reputations, keep mileage and condition reasonable, and avoid trading too often. Depreciation is usually the single largest cost of ownership — bigger than fuel or repairs.
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