Car Depreciation Calculator
Estimate how much value a car may retain after a chosen number of years and review the projected loss year by year.
Vehicle assumptions
Rates are editable assumptions, not a market appraisal. Your entries stay in this browser.
Estimated value
| Year | Starting value | Loss | Ending value |
|---|
How car depreciation is calculated
This calculator applies the first-year rate once, then applies the later annual rate to the remaining value each year. Because the percentage is applied to a declining balance, the money lost changes over time.
Ending value = Starting value × (1 − annual rate)
Worked depreciation example
A $30,000 vehicle with 20% first-year depreciation is estimated at $24,000 after year one. At 12% annually afterward, estimated value becomes $21,120 after year two and $18,585.60 after year three.
Depreciation is not a straight-line loss
The rate is applied to remaining value, so the dollar loss changes each year. A straight-line accounting schedule and a market resale estimate answer different questions.
Use a range for purchase decisions
Run low, expected and high depreciation scenarios. Mileage, damage, demand and model changes may accelerate the decline, while careful maintenance and limited supply may slow it.
Actual resale or trade-in value can differ substantially because of make, model, mileage, condition, accident history, location, demand, incentives and economic conditions. Compare the estimate with current local listings and professional valuations before a financial decision.