Car Depreciation Calculator
Estimate the future resale value of your vehicle based on annual depreciation rates.
Estimated Future Value:
Total Value Lost:
Percentage Value Kept:
How Car Depreciation Works
Depreciation is the difference between the amount you spend when you buy a car and the amount you get back when you sell or trade it in. For most consumers, depreciation is the single largest expense of owning a vehicle, often surpassing fuel, insurance, and maintenance costs.
Typically, a new car loses about 20% of its value in the first year and roughly 15% each year thereafter. By the end of five years, many vehicles are worth only 40% of their original purchase price.
Real-World Example:
If you buy a SUV for $40,000 and it depreciates at an average rate of 15% per year, after 3 years the calculation would look like this:
Year 1: $40,000 – 15% = $34,000
Year 2: $34,000 – 15% = $28,900
Year 3: $28,900 – 15% = $24,565
Total Loss: $15,435
If you buy a SUV for $40,000 and it depreciates at an average rate of 15% per year, after 3 years the calculation would look like this:
Year 1: $40,000 – 15% = $34,000
Year 2: $34,000 – 15% = $28,900
Year 3: $28,900 – 15% = $24,565
Total Loss: $15,435
Factors That Influence Your Car's Resale Value
- Mileage: The more you drive, the faster the value drops. High mileage suggests more wear and tear on the engine and components.
- Condition: Vehicles with clean interiors, no exterior dents, and a documented service history retain value significantly better.
- Brand Reputation: Certain brands (like Toyota or Honda) are known for reliability and typically depreciate slower than luxury brands or discontinued models.
- Fuel Efficiency: As gas prices fluctuate, fuel-efficient vehicles or hybrids often see better value retention compared to gas-guzzling trucks or SUVs.
How to Use This Calculator
To get an accurate estimate, enter your purchase price (including taxes and fees). If you are buying a used car, enter the price you are paying now and set the "Age" to its current age. The "Ownership Years" refers to how much longer you plan to keep the vehicle. The annual depreciation rate usually ranges between 10% and 20% for most consumer vehicles.