How fast do cars depreciate?

New cars lose about 20% of their value in the first year and 15% per year after that. After 5 years, most new cars are worth 35–45% of their original purchase price.

Which cars depreciate the least?

Trucks and certain SUVs (like the Toyota 4Runner, Jeep Wrangler) hold value exceptionally well. Luxury vehicles and EVs often depreciate fastest in the first few years.

Does mileage affect depreciation?

Yes. High mileage accelerates depreciation. The average US car is driven 12,000–15,000 miles per year. Every 10,000 miles above average can reduce resale value by 1–2%.

Automotive Calculators

Car Depreciation Calculator

See how your car's value decreases over time. Enter your purchase price and annual depreciation rate to get a full year-by-year schedule.

FreeCustom RateYear-by-YearNo sign-up

Vehicle Details

Purchase Price

Annual Depreciation Rate

Years to Calculate

years

Year	Value	Lost
Year 1	$29,750.00	−$5,250.00
Year 2	$25,287.50	−$4,462.50
Year 3	$21,494.38	−$3,793.13
Year 4	$18,270.22	−$3,224.16
Year 5	$15,529.69	−$2,740.53

Value After 5 Years

$15,529.69

down from $35,000.00

Total Lost

$19,470.31

depreciation

% Lost

55.6%

of purchase price

New cars typically depreciate 15–25% per year. The first year alone can cost 20% or more of the vehicle's value.

What Is Car Depreciation?

Depreciation is the reduction in your vehicle's value over time due to age, mileage, and wear. It's typically the largest single cost of car ownership — often more than fuel, insurance, and maintenance combined for new vehicles.

Depreciation Formula

This calculator uses the declining balance method: each year, the depreciation is calculated as a percentage of the current value (not the original price). This matches how most vehicle depreciation actually works in practice.

Formula: Value Year N = Purchase Price × (1 − Annual Rate)^N

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