All tools
Finance

Car Depreciation Calculator

Project a car's value over time using a realistic year-1-then-flattening depreciation curve.

🔒 Runs entirely in your browser — nothing here is ever uploaded

Last reviewed 2026-08-30

About the Car Depreciation Calculator

Projects a vehicle's resale value over time using a widely-cited two-stage depreciation curve — a steep drop in year one, then a flatter, steady decline in each year after.

100% Free Runs in Your Browser No Sign-Up Required
How to use it
  1. Enter the vehicle's purchase price (new).
  2. Enter how many years to project.
  3. Adjust the year-1 and later-year depreciation rates if you have a specific figure.
  4. Read the projected value and total value lost.
Formula
Value after year 1 = purchase price × (1 − year-1 rate). Value after each subsequent year = prior year's value × (1 − later-year rate).
Worked example

A $35,000 new car projected over 5 years at the default 20% year-1 / 15%-later rates: value drops to about $14,616 — a total loss of about 58%.

Interpreting your result

Depreciation is modeled as two flat rates — a widely-cited simplification, not a per-model curve. Real depreciation varies enormously by make, model, mileage, condition, and market demand.

Recommendations
  • The steepest depreciation happens in years 1-2 — buying a 2-3-year-old used car means someone else absorbed the worst of the value loss.
  • If you know your specific make/model's actual depreciation rate, override the default rates.
  • This models depreciation only — financing is a separate expense.
Frequently asked questions
New cars carry a premium that evaporates the moment they're titled as used.
See the full methodology and sources for every finance calculator
Disclaimer

Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.