Car Depreciation Calculator
Calculate your car's depreciation over time using the declining balance method. See year-by-year values and compare rate presets.
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Rate Presets
Enter 1 to 5
Results
Value at Year 3
$18,423.75
Total Depreciation
$11,576.25
Depreciation %
38.6%
Year-by-Year Values
Year 1
$25,500.00
Year 2
$21,675.00
Year 3
$18,423.75
Year 4
$15,660.19
Year 5
$13,311.16
How is Car Depreciation Calculated?
Car depreciation is calculated using the declining balance method: each year, the car loses a fixed percentage of its current value. The formula is: Value = Purchase Price × (1 - Rate)^Years.
Example
A $30,000 car depreciating at 15% per year is worth about $25,500 after year 1, $21,675 after year 2, and $18,424 after year 3. After 5 years it's worth roughly $13,294 — a total loss of about $16,706.
Common Use Cases
- Estimating your car's current market value for selling or trading in.
- Understanding how quickly a new vehicle loses value.
- Planning the optimal time to sell or trade in a vehicle.
- Comparing depreciation rates across different vehicle types.
FAQs
What is the average depreciation rate for a car?
Most cars lose about 15–20% of their value per year, with the steepest drop in the first year. Luxury and high-mileage vehicles may depreciate faster, while some trucks and SUVs hold value better.
Does mileage affect depreciation?
Yes — higher mileage accelerates depreciation. A car driven 20,000 miles per year will lose value faster than one driven 10,000 miles, even if both are the same age.
Can a car appreciate in value?
Most cars depreciate, but certain classic, limited-edition, or rare models can appreciate over time. Supply chain disruptions and market conditions can also temporarily boost used car values.