Estimate your vehicle's future resale value and total depreciation cost.
Sedan / Hatchback
SUV / Crossover
Pickup Truck
Luxury Vehicle
Electric Vehicle (EV)
Estimated Resale Value:$0.00
Total Depreciation:$0.00
Percentage of Value Lost:0%
Average Yearly Cost:$0.00
How Car Depreciation Works
Depreciation is the difference between what you paid for your car and what you can sell it for later. For most people, it is the single largest expense of owning a vehicle, often exceeding the cost of fuel, insurance, or maintenance.
Key Factors Influencing Your Car's Value
Vehicle Type: Trucks and SUVs typically hold their value better (lower depreciation rate) compared to luxury sedans or high-end electric vehicles.
Mileage: The average driver covers 12,000 to 15,000 miles per year. Exceeding this significantly lowers the resale value.
Condition: Regular maintenance records and a clean interior/exterior can help recover a higher percentage of the initial cost.
Brand Reputation: Brands known for reliability (like Toyota or Honda) often depreciate much slower than brands perceived as expensive to repair.
Example Calculation
If you purchase a $40,000 SUV and drive it for 5 years:
Year 1: Loses roughly 20% ($8,000). Remaining value: $32,000.
Years 2-5: Loses roughly 10-15% of the remaining value each year.
After 5 Years: The vehicle might be worth approximately $20,000 to $24,000.
Tips to Minimize Depreciation
To keep your car's value high, consider buying a "nearly new" used car (2-3 years old) to let the first owner take the biggest depreciation hit. Additionally, keeping mileage low and performing all scheduled maintenance at certified dealerships can provide the documentation buyers look for in the used market.
function calculateDepreciation() {
var price = parseFloat(document.getElementById("purchasePrice").value);
var years = parseFloat(document.getElementById("ownershipYears").value);
var rate = parseFloat(document.getElementById("vehicleType").value);
var miles = parseFloat(document.getElementById("annualMileage").value);
if (isNaN(price) || isNaN(years) || isNaN(rate) || isNaN(miles) || price <= 0 || years 12000) {
mileagePenalty = ((miles – 12000) / 2000) * 0.01;
} else if (miles < 8000) {
// Lower mileage reduces depreciation slightly
mileagePenalty = -0.01;
}
var annualRate = rate + mileagePenalty;
if (annualRate < 0.05) annualRate = 0.05; // Floor depreciation at 5%
// Calculate future value using reducing balance method: Value = P * (1 – r)^t
// We adjust Year 1 specifically because it's usually higher
var firstYearRate = annualRate + 0.10; // Year 1 is always harsher
var valueAfterYearOne = price * (1 – firstYearRate);
var finalValue = 0;
if (years <= 1) {
finalValue = price * (1 – (firstYearRate * years));
} else {
finalValue = valueAfterYearOne * Math.pow((1 – annualRate), (years – 1));
}
// Ensure value doesn't go below scrap value (roughly 5% of original)
if (finalValue 0 ? years : 1);
// Update UI
document.getElementById("resaleValueText").innerHTML = "$" + finalValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalDepreciationText").innerHTML = "$" + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("percentLostText").innerHTML = percentLost.toFixed(1) + "%";
document.getElementById("yearlyCostText").innerHTML = "$" + yearlyCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("calc-result-box").style.display = "block";
}