Depreciation is the difference between what you paid for your car and what it is worth today. Most vehicles lose value the moment they leave the dealership. This calculator uses a standard industry model that accounts for the sharp decline in the first year followed by a steadier decline thereafter, adjusted for usage and condition.
Key Factors Affecting Your Car's Value
The First Year Drop: New cars typically lose 20% of their value in the first 12 months.
Mileage: The average car drives 12,000 miles per year. Exceeding this significantly lowers resale value.
Condition: Exterior damage, interior stains, and mechanical issues can slash up to 20% off the "Good" market value.
Market Demand: Reliable brands (like Toyota or Honda) often depreciate slower than luxury brands with high maintenance costs.
Typical Depreciation Schedule
Age of Car
Average Residual Value (%)
New
100%
1 Year
80%
3 Years
58%
5 Years
40%
Example Calculation
If you purchase a vehicle for $40,000 and keep it for 3 years while driving 12,000 miles per year in Good condition:
Year 1: $40,000 x 0.80 = $32,000
Year 2: $32,000 x 0.85 = $27,200
Year 3: $27,200 x 0.85 = $23,120
The estimated current value would be approximately $23,120, representing a total depreciation of $16,880.
function calculateDepreciation() {
var price = parseFloat(document.getElementById("purchasePrice").value);
var age = parseFloat(document.getElementById("vehicleAge").value);
var mileage = parseFloat(document.getElementById("annualMileage").value);
var condition = document.getElementById("carCondition").value;
var resultDiv = document.getElementById("depreciationResult");
var output = document.getElementById("resultOutput");
if (isNaN(price) || isNaN(age) || isNaN(mileage) || price = 1) {
currentValue = currentValue * 0.80;
} else if (age > 0 && age 1) {
var remainingYears = age – 1;
currentValue = currentValue * Math.pow(0.85, remainingYears);
}
// Mileage Adjustment
// Standard is 12,000. For every 1,000 miles above average per year, lose 1% extra.
var totalExpectedMileage = age * 12000;
var actualTotalMileage = mileage * age;
if (actualTotalMileage > totalExpectedMileage) {
var excess = (actualTotalMileage – totalExpectedMileage) / 1000;
var mileagePenalty = (excess * 0.01) * price;
currentValue = currentValue – (mileagePenalty * 0.5); // Weighted impact
}
// Condition Multipliers
var conditionMultiplier = 1;
if (condition === "excellent") conditionMultiplier = 1.05;
if (condition === "good") conditionMultiplier = 1.00;
if (condition === "fair") conditionMultiplier = 0.85;
if (condition === "poor") conditionMultiplier = 0.70;
currentValue = currentValue * conditionMultiplier;
// Sanity check (car value rarely goes below 5% of original price unless scrapped)
if (currentValue < (price * 0.05)) {
currentValue = price * 0.05;
}
var totalLoss = price – currentValue;
var percentageLoss = (totalLoss / price) * 100;
resultDiv.style.display = "block";
output.innerHTML = "Estimated Current Value:$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "" +
"Total Depreciation: $" + totalLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " (" + percentageLoss.toFixed(1) + "%)";
}