Car Depreciation Calculator

About this calculator

Cars lose value on a predictable curve rather than a straight line: the steepest drop happens in the first year (often 15–25% of the purchase price), with the rate slowing in later years, which is why depreciation calculations typically use a declining-balance method — applying a percentage loss to the remaining value each year rather than a flat percentage of the original price. A car's make, model, mileage, condition and market demand all shift the actual annual rate up or down from the general curve, but the compounding pattern (percentage of what's left, not of the original price) holds across virtually every vehicle.

Car buyers use depreciation estimates to compare the true cost of ownership between models before purchasing (a car that's cheap to buy but depreciates fast can cost more overall than a pricier car that holds value); lenders and lessors use depreciation curves to set loan-to-value ratios and lease residual values; and insurance adjusters reference depreciation when calculating a vehicle's actual cash value after a total-loss claim.

This calculator takes your car's starting value, depreciation rate and number of years to project its resale value and total depreciation over that period, so you can plan a purchase, trade-in or budget with a realistic number.