Car Depreciation Calculator
Estimate how much a vehicle will be worth after a number of years.
Enter your values to calculate your result.
Formula
Value After N Years = Purchase Price × (1 − Rate)ⁿ
Each year, the vehicle's value is assumed to shrink by the same percentage of its PREVIOUS year's value (declining-balance depreciation), not a fixed dollar amount per year. Compounding a loss this way means depreciation is steepest in the early years and gradually slows down.
Example
A $30,000 car depreciating at 15%/year is worth about $13,311 after 5 years — a loss of roughly $16,689, or about 55.6% of its original price.
Frequently Asked Questions
What depreciation rate should I use?
Depreciation rates vary a lot by make, model, and market — many mainstream vehicles lose roughly 15-20% of their value per year on average, especially in the first few years, but this varies widely. Check resale value guides for your specific vehicle for a more accurate rate.
Why does the value drop faster in earlier years?
Since each year's loss is a percentage of a shrinking balance, the dollar amount lost is largest in year 1 and gets progressively smaller afterward, even though the percentage rate stays the same every year.