Car Depreciation Calculator: Value After Years
How much will my car be worth in a few years? Enter the purchase price, the first-year drop and the yearly rate after that to see the car's future value, the total loss and the percentage lost. It is a resale estimate. To count fuel, insurance and upkeep too, use the car ownership cost calculator, and to see the same loss against a lease, use the lease vs buy calculator.
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Formula
- After year 1:
value = price x (1 - first-year drop%) - Each later year:
value = value x (1 - yearly rate%) - After n years:
price x (1 - first drop) x (1 - yearly rate)^(n - 1) - Total loss =
price - value; loss % =total loss / price x 100
The rates are typical illustrations you can change; real values depend on model, mileage, condition and market.
Worked example
Price 30,000, first-year drop 20%, then 15% a year, 5 years.
| Year | Value |
|---|---|
| 0 | 30,000.00 |
| 1 | 24,000.00 |
| 2 | 20,400.00 |
| 3 | 17,340.00 |
| 4 | 14,739.00 |
| 5 | 12,528.15 |
Total loss = 30,000 - 12,528.15 = 17,471.85, which is 58.24% of the price.
Use this when
You are deciding how long to keep a car, estimating trade-in value, or comparing a new car with a used one. Many cars lose roughly 15 to 25 percent in the first year and roughly 10 to 15 percent a year afterwards, though this varies widely, so these are typical figures, not predictions.
How it differs from nearby pages
This page models only the loss in value. The total cost of ownership calculator adds fuel, insurance, maintenance and taxes. The car lease calculator prices a lease from a residual value, and the lease vs buy calculator compares the two using a yearly depreciation rate. The general depreciation calculator covers business assets with straight-line and declining methods.
Common mistakes
- Applying one flat rate to year 1, which understates the biggest drop.
- Expecting the result to be an appraisal. Mileage, condition and demand move real prices.
- Entering a rate as a decimal (0.15) instead of a percent (15).
- Using the purchase price for a car you bought used, with a first-year drop meant for a new one.
Frequently asked questions
How is car depreciation calculated here?
The first year the car loses the first-year percentage, then each later year it loses the yearly rate of its remaining value. Value = price x (1 - first drop) x (1 - yearly rate)^(years - 1). For 30,000, 20% and 15% over 5 years that is 24,000 x 0.85^4 = 12,528.15.
What depreciation rates are typical?
Many new cars lose roughly 15 to 25% in the first year and about 10 to 15% a year afterwards, but it varies a lot by model, mileage and market. The defaults of 20% and 15% are typical illustrations, not a forecast for your car.
Why is the first year the biggest drop?
A new car becomes a used car the moment it is registered, and buyers pay a premium for new. On a 30,000 car a 20% first-year drop is 6,000 gone in year one, while a 15% drop in year two costs 3,600.
Can I use this for a used car?
Yes. Enter what you paid and set the first-year drop to the rate you expect for the next year, which is often lower for an older car. The result is an estimate of resale value, not an appraisal.
How much is a $25,000 car worth after 3 years?
With a 20 percent first-year drop and 15 percent a year after that, it is worth 25,000 x 0.8 x 0.85 x 0.85 = 14,450 after 3 years. The loss is 10,550, or 42.2 percent of the price.
How much value does a car lose in 10 years?
With the default 20 percent first-year drop and 15 percent a year, a 30,000 car falls to 5,558.81 after 10 years, a loss of 24,441.19, or 81.47 percent. These are illustrative rates, not a forecast for your model.
How do I enter a 25% first-year and 12% yearly depreciation?
Set the first-year drop to 25 and the yearly rate to 12. A 40,000 car is then worth 30,000 after one year, 26,400 after two and 23,232 after three, a loss of 16,768 (41.92 percent).