Car Depreciation Calculator
Estimate how much a new or used car will be worth after each year of ownership and what you could get when you sell it, using typical depreciation rates or your own.
Condition and mileage adjustment (optional)
Rule of thumb: about 0.5% off the value for every 1,000 miles (1,600 km) above an average of 12,000 miles a year over the years you own the car, and a small bonus for low mileage. Capped at −20% / +10%.
Estimated value over time
Year-by-year depreciation
| Year owned | Car age | Rate | Value lost | Value at year end | % of price kept |
|---|
Estimates based on average depreciation patterns. Real resale prices depend on make, model, demand, accident history and your local market. Check current listings or a valuation guide before selling.
How to use the Car Depreciation Calculator
- Enter the purchase price and the car's age when you bought it (0 for a new car).
- Choose how many years you plan to keep the car.
- Pick a depreciation model: typical, holds value well, loses value fast, or enter your own rates.
- Optionally adjust for the expected condition and how far you drive each year.
- Press Calculate to see the resale value, total depreciation, the value curve and the year-by-year table.
How car depreciation is calculated
Depreciation compounds: each year the car loses a percentage of what it was worth at the start of that year. The value after n years is price × (1 − d1) × (1 − d2) × … × (1 − dn), where d is that year's depreciation rate.
Example with the typical model and a $35,000 new car: year one at 20% leaves $28,000, year two at 15% leaves $23,800, and after five years the car is worth about $14,616, or 41.8% of the price. It has cost $20,384 in depreciation, about $340 a month.
Typical value retained by a new car
| After | Typical model | Value of a $35,000 car | Holds value well | Loses value fast |
|---|---|---|---|---|
| 1 year | 80.0% | $28,000 | 85.0% | 75.0% |
| 2 years | 68.0% | $23,800 | 76.5% | 61.5% |
| 3 years | 57.8% | $20,230 | 68.8% | 50.4% |
| 5 years | 41.8% | $14,616 | 55.8% | 33.9% |
| 10 years | 24.7% | $8,631 | 38.8% | 17.9% |
These curves are based on commonly reported industry averages. Individual models can be well above or below them.
How to lose less money to depreciation
- Buy one to three years old. The first owner takes the steepest part of the drop.
- Keep the car longer. Depreciation per year falls as the car ages, so the cost per year of ownership goes down.
- Choose models with strong resale values and popular colours and trims.
- Keep service records, fix small damage and keep the mileage reasonable.
Frequently asked questions
How fast do cars depreciate?
A typical new car loses around 20% of its value in the first year and roughly 15% a year for the next few years, so it is worth about 40% to 45% of its original price after five years. The rate slows down as the car gets older.
How is car depreciation calculated?
Each year the car loses a percentage of its value at the start of that year. With the typical model, a $35,000 new car is worth $28,000 after year one (−20%), $23,800 after year two (−15%) and about $14,616 after five years.
Does a used car depreciate more slowly?
Yes. The biggest drop happens in the first one to three years, so a car bought used has already lost that value. Enter the car's age when you bought it and the calculator starts from that point on the depreciation curve.
Which cars hold their value best?
Popular pickup trucks, some SUVs and models with a strong reputation for reliability tend to keep more of their value. Many luxury cars and some electric vehicles lose value faster, partly because of rapidly changing technology and incentives on new models.
How does mileage affect a car's value?
Higher mileage lowers the value because it means more wear. An average is about 12,000 to 13,500 miles a year. The optional adjustment here takes about 0.5% off for every 1,000 miles a year above 12,000 over the years you own the car, which is a rough rule of thumb only.
How accurate is this estimate?
It shows a typical pattern, not a quote. Actual prices depend on the make and model, trim, condition, accident history, local demand and the overall used-car market. Compare with current listings or a valuation guide before buying or selling.