Time Value of Money Calculator

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Car Depreciation Calculator

Excellent (Like New) Good (Minor wear) Fair (Visible wear/tear) Poor (Needs repair)

Valuation Results

Current Estimated Value:

Total Value Lost:

Total Depreciation Percentage:

function calculateCarDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('vehicleAge').value); var mileage = parseFloat(document.getElementById('annualMileage').value); var conditionMult = parseFloat(document.getElementById('carCondition').value); var resultDiv = document.getElementById('depreciationResult'); if (isNaN(price) || isNaN(age) || isNaN(mileage) || price <= 0 || age < 0 || mileage 0) { // Year 1 hit remainingValue = remainingValue * 0.80; // Subsequent years hit (compounded) if (age > 1) { for (var i = 1; i standardMileage && age > 0) { var excess = totalActualMileage – standardMileage; var penaltyPercent = (excess / 2000) * 0.01; remainingValue = remainingValue * (1 – penaltyPercent); } // Condition Adjustment remainingValue = remainingValue * conditionMult; // Ensure value doesn't drop below 5% scrap value if (remainingValue < (price * 0.05)) { remainingValue = price * 0.05; } var totalDepreciation = price – remainingValue; var percentage = (totalDepreciation / price) * 100; document.getElementById('currentVal').innerText = "$" + remainingValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalLoss').innerText = "$" + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('percentLoss').innerText = percentage.toFixed(1) + "%"; resultDiv.style.display = "block"; }

Understanding Car Depreciation

Car depreciation is the difference between what you paid for your vehicle and what it is worth today. For most vehicle owners, depreciation is the single largest expense of owning a car, often exceeding the costs of fuel, insurance, and maintenance combined.

Key Factors in Vehicle Value Loss

  • The First Year Drop: New cars typically lose 20% of their value in the first 12 months of ownership.
  • Mileage: High mileage reduces a car's value because it suggests more wear and tear on the engine and suspension.
  • Maintenance History: A vehicle with a documented service history retains its value better than one without records.
  • Condition: Dents, scratches, and interior stains can significantly lower the resale price.

How to Use the Car Depreciation Calculator

To get an accurate estimate of your vehicle's current market value, follow these steps:

  1. Original Price: Enter the full sticker price or the amount you paid including taxes.
  2. Age: Enter how many years have passed since the car was manufactured or purchased new.
  3. Annual Mileage: Input how many miles you drive on average per year. The national average is approximately 12,000 miles.
  4. Condition: Be honest about the car's state. "Excellent" is rare for any car driven daily for more than a year.

Real-World Example

Imagine you purchased a SUV for $40,000. After 3 years of driving 15,000 miles per year (slightly above average) and maintaining it in Good condition, the calculation would look like this:

  • Year 1 Depreciation (20%): Value drops to $32,000.
  • Year 2 & 3 Depreciation (15% annually): Value drops to approximately $23,120.
  • Mileage Adjustment: Because the car was driven 9,000 miles over the standard average, a further reduction is applied.
  • Estimated Result: The car would likely be worth roughly $20,500 – $21,500.

Pro Tip: To minimize depreciation, consider buying a 2-3 year old vehicle. The original owner has already absorbed the steepest part of the depreciation curve (the initial 30-40% drop), allowing you to own the car during its "value plateau."

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