CAR CALCULATOR
Car Depreciation Calculator
Use this auto depreciation calculator to estimate vehicle value loss over time with separate first-year and later annual depreciation rates.
Your depreciation estimate
Value = purchase price x (1 - first-year rate) x (1 - later rate)^(remaining years)
Planning estimate only. Actual resale value depends on make, model, mileage, condition, location, demand, accident history, and market conditions.
How to use this calculator
Car depreciation is the reduction in a vehicle’s value over time. Use this auto depreciation calculator to estimate vehicle value loss, retained value, and average depreciation per year using separate first-year and later annual rates.
- Enter the original purchase price and current vehicle age.
- Enter an estimated first-year depreciation rate to reflect the faster value loss many new cars experience when they become used vehicles.
- Enter the annual depreciation rate expected for each later year, then review the estimated current value, total loss, retained value, and average annual loss.
How the calculation works
Estimated value = price x (1 - first-year rate) x (1 - later annual rate) raised to the remaining years.
Understanding the result
Value retained shows the percentage of the purchase price still remaining. Average depreciation per year spreads the estimated total value loss evenly across the vehicle age for comparison; it does not mean the car loses the same amount every year. Real-world resale value can differ because of purchase price, age, mileage, condition, make and model, service or accident history, location, and market demand. This result is an estimate, not a vehicle valuation, appraisal, or guaranteed sale price.
Frequently asked questions
How much does a car depreciate per year?
There is no universal average for every car. Age, mileage, condition, make and model, demand, and market conditions all matter. The result reports an average annual value loss from the assumptions you enter.
How do I calculate car depreciation?
Apply the first-year rate to the purchase price, apply the later annual rate for each remaining year, and subtract the estimated current value from the original price. The calculator performs this calculation automatically.
Do cars depreciate faster in the first few years?
Often, yes. The change from new to used can cause faster early value loss, although the actual pattern varies by vehicle and market.
Is this an auto depreciation calculator or a vehicle valuation?
It is an auto depreciation calculator for planning scenarios. It is not a professional vehicle valuation, appraisal, dealer offer, or guaranteed resale price.