Standard Sedan / Hatchback
Truck / Large SUV
Luxury Vehicle
Electric Vehicle (EV)
Low (Under 10,000 miles)
Average (12,000 – 15,000 miles)
High (Over 20,000 miles)
Estimated Current Value
Total Depreciation Loss
Understanding Car Depreciation
Car depreciation is the difference between the amount you paid for your vehicle and what it is worth when you decide to sell or trade it in. For most consumers, depreciation is the single largest expense of owning a new vehicle—often exceeding the costs of fuel, insurance, or maintenance.
On average, a new car loses about 20% of its value within the first year. After that initial drop, it typically loses about 15% per year for the next four to five years. Our calculator uses these industry-standard curves combined with adjustments for specific vehicle types and mileage usage to provide a realistic estimate of your car's current market value.
Example Calculation:
Suppose you buy a Luxury Sedan for $50,000.
After Year 1: Value drops to $39,000 (22% loss).
After Year 3: Value drops to approximately $23,700.
If you drive 20,000+ miles a year, you could lose an additional 5% of the remaining value annually.
Factors That Influence Your Car's Resale Value
Several variables determine how quickly your car loses value:
Brand Reputation: Brands known for reliability (like Toyota or Honda) tend to hold their value significantly better than luxury brands that are expensive to maintain out of warranty.
Mileage: The more miles on the odometer, the lower the value. Standard calculations assume 12,000 to 15,000 miles per year.
Condition: Mechanical health and aesthetic condition (scratches, interior wear) play a massive role in final trade-in offers.
Fuel Economy & Tech: As gas prices rise, fuel-efficient cars depreciate slower. Conversely, rapidly evolving tech can make older EVs or luxury cars feel dated more quickly.
How to Minimize Vehicle Depreciation
While you cannot stop depreciation, you can minimize its impact by choosing models with historically high resale values, performing regular documented maintenance, and keeping the mileage within reasonable limits. Buying a "nearly new" used car (2-3 years old) is often the best financial move, as the original owner has already absorbed the steepest part of the depreciation curve.
function calculateDepreciation() {
var price = parseFloat(document.getElementById('purchasePrice').value);
var age = parseFloat(document.getElementById('vehicleAge').value);
var typeRate = parseFloat(document.getElementById('vehicleType').value);
var mileagePenalty = parseFloat(document.getElementById('annualMileage').value);
if (isNaN(price) || isNaN(age) || price <= 0 || age 0) {
// Year 1 hit
currentValue = currentValue * (1 – (totalDepreciationRate + 0.05));
// Subsequent years
if (age > 1) {
for (var i = 1; i < age; i++) {
currentValue = currentValue * (1 – totalDepreciationRate);
}
}
}
// Set floor value (cars rarely go to $0 if running)
if (currentValue < (price * 0.1)) {
currentValue = price * 0.1;
}
var totalLoss = price – currentValue;
var percentLoss = (totalLoss / price) * 100;
document.getElementById('currentValue').innerText = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLoss').innerText = "- $" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('percentageLoss').innerText = "Total value lost: " + percentLoss.toFixed(1) + "%";
document.getElementById('resultArea').style.display = 'block';
}