Interest Rate Math Calculator

Car Depreciation Calculator

Estimate the future resale value of your vehicle based on market trends.

Sedan (15%/yr) SUV / Truck (12%/yr) Luxury Vehicle (25%/yr) Electric Vehicle (18%/yr)

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function calculateCarDepreciation() { var price = parseFloat(document.getElementById("purchasePrice").value); var age = parseFloat(document.getElementById("carAge").value); var rate = parseFloat(document.getElementById("vehicleType").value); var condition = parseFloat(document.getElementById("conditionModifier").value); if (isNaN(price) || isNaN(age) || price <= 0 || age 0 var initialDrop = age > 0 ? 0.9 : 1.0; var remainingYears = age > 0 ? age – 1 : 0; var depreciatedValue = price * initialDrop * Math.pow((1 – rate), remainingYears); // Apply condition modifier depreciatedValue = depreciatedValue * condition; var totalLoss = price – depreciatedValue; var percentRetained = (depreciatedValue / price) * 100; document.getElementById("resCurrentValue").innerText = "$" + depreciatedValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("resTotalLoss").innerText = "-$" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("resPercentage").innerText = percentRetained.toFixed(1) + "%"; document.getElementById("depResult").style.display = "block"; }

How Car Depreciation Works

Depreciation is the difference between what you paid for your vehicle and what you can sell it for later. For most consumers, depreciation is the single largest expense of owning a new car, often exceeding the cost of fuel, insurance, or maintenance.

The "Off-the-Lot" Effect

It is a common automotive fact that a new car loses a significant chunk of its value the moment you drive it off the dealership lot. On average, a vehicle can lose 10% to 20% of its value within the first year. Our calculator accounts for this initial drop plus the compound annual depreciation that occurs over time.

Factors Influencing Your Car's Value

• Mileage: High mileage typically results in higher depreciation as it indicates more wear and tear on the engine and components.
• Brand Reputation: Brands like Toyota and Honda often retain value better than luxury brands because of their perceived long-term reliability.
• Condition: Scratches, interior stains, or a lack of service history can reduce your vehicle's value by an additional 10-30%.
• Fuel Efficiency & Tech: As gas prices rise, fuel-efficient cars hold value better. Similarly, outdated infotainment systems can hurt luxury car resale.

Example Calculation

If you purchase a Sedan for $30,000 and keep it for 3 years:

• Year 1: Value drops to roughly $24,000 (20% drop).
• Year 2: Value drops by 15% of the remaining $24,000 (~$20,400).
• Year 3: Value drops by 15% of the remaining $20,400 (~$17,340).

In this scenario, your car has lost nearly 42% of its original value in just 36 months.

How to Minimize Depreciation

To keep your car's resale value as high as possible, follow these steps:
1. Perform regular scheduled maintenance and keep all receipts.
2. Keep the mileage below the national average (approx. 12,000 – 15,000 miles per year).
3. Choose "safe" colors like white, black, or silver, which are easier to resell.
4. Avoid aftermarket modifications that may void warranties or narrow the pool of buyers.