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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

$
%
years
YearValueLost
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