Car depreciation calculator
A car loses part of its value every year. Enter the purchase price and the yearly rate to see its expected resale value.
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How to use it
- Enter purchase price, annual depreciation rate and years owned.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Value after n years = price × (1 − rate ÷ 100)^n. This is the declining-balance method: the rate applies to the value at the start of each year.
Example
Inputs: Purchase price = 100,000, Annual depreciation rate = 15 %, Years owned = 5 years. Result: Estimated value: 44,370.53; Total depreciation: 55,629.47; Total loss in percent: 55.63%.
Limits and caveats
- The yearly rate is your assumption: cars usually lose more in the first year, and rates vary widely by model, market and condition.
- Actual condition, mileage and accident history are not modeled.
Questions about this tool
Which rate should I use?
Compare local listings for the same model at 1, 3 and 5 years old and derive the rate from them. The 15% default is only a starting figure.
Why does the value never reach zero?
With declining balance, the rate applies to the remaining value each year, so the amount lost shrinks over time.
How do I get the rate from two prices I know?
Rate = 1 − (current value ÷ purchase price)^(1 ÷ years), then multiply by 100.