10% (Low – Luxury/Hold Value)
15% (Average Sedan)
20% (High – New Cars/SUVs)
25% (Extreme – High Mileage)
Estimated Current Market Value:
Total Depreciation: Value Retained:
Understanding Car Depreciation
Car depreciation is the difference between the amount you paid for a vehicle and what it is worth when you decide to sell or trade it in. For most consumers, depreciation is the single largest cost of owning a vehicle—often exceeding the cost of fuel, insurance, or maintenance.
How This Calculator Works
This tool uses the Declining Balance Method. Unlike straight-line depreciation used in some business accounting, vehicles lose value most rapidly in the first few years. We apply a consistent percentage loss to the remaining value of the car for every year of its age.
Vehicle Age
Typical Value Retained
1 Year
~80% of original price
3 Years
~60% of original price
5 Years
~40% of original price
Top Factors That Influence Depreciation
Mileage: The more you drive, the faster the value drops. High mileage indicates more wear and tear on engine components.
Brand Reputation: Brands like Toyota and Honda typically have lower depreciation rates due to perceived reliability.
Condition: Regular maintenance records and a clean interior significantly boost resale value.
Fuel Economy: As gas prices rise, fuel-efficient vehicles hold their value better than "gas guzzlers."
Example Calculation
If you purchase a new SUV for $40,000 and it has an annual depreciation rate of 15%:
After Year 1: $40,000 – 15% = $34,000
After Year 2: $34,000 – 15% = $28,900
After Year 3: $28,900 – 15% = $24,565
In this scenario, you have lost over $15,000 in value in just 36 months.
function runDepreciationCalc() {
var price = parseFloat(document.getElementById('purchasePrice').value);
var age = parseFloat(document.getElementById('vehicleAge').value);
var ratePercent = parseFloat(document.getElementById('depRate').value);
var resultDiv = document.getElementById('depreciation-result');
if (isNaN(price) || price <= 0) {
alert("Please enter a valid purchase price.");
return;
}
if (isNaN(age) || age < 0) {
alert("Please enter a valid vehicle age.");
return;
}
var rateDecimal = ratePercent / 100;
// Formula: Current Value = Purchase Price * (1 – rate)^years
var currentVal = price * Math.pow((1 – rateDecimal), age);
var totalLost = price – currentVal;
var retainedPercent = (currentVal / price) * 100;
// Update UI
document.getElementById('currentValue').innerText = "$" + currentVal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLostText').innerText = "$" + totalLost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('percentRetained').innerText = retainedPercent.toFixed(1) + "%";
resultDiv.style.display = 'block';
}