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Car Depreciation Calculator

Estimated Current Value

$17,340.00

The Numbers

  • Total depreciation: $12,660.00 (42.2% of original price)
  • Value after 1 year: $24,000.00
  • Value after 3 years: $17,340.00
  • Value after 5 years: $12,528.15

Analysis

  • This uses a commonly-cited real-world estimate — about 20% lost in the first year, then about 15% of the remaining value lost each year after — not an appraisal of this specific vehicle, which depends heavily on make, model, mileage, and condition.

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Good to Know

This uses a commonly-cited industry rule of thumb (about 20% lost in year one, about 15% of the remaining value lost each year after), not an appraisal of a specific vehicle — actual resale value depends heavily on make, model, mileage, condition, and local market demand.

Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

A new car commonly loses around 20% of its value in the first year, then around 15% of its remaining value each year after that. Enter the original price and how many years it’s been (or will be) owned, and this calculator estimates its resale value today, using a widely-cited real-world depreciation curve — not the straight-line or declining-balance accounting schedules built for business assets.

Depreciation is the single biggest cost of owning a car for most people — often larger than interest, fuel, or maintenance over the life of ownership. Knowing roughly where a vehicle sits on that curve helps with decisions like whether to buy new or slightly used, how long to keep a car, or what a trade-in is realistically worth.

The Formula

Value After 1 Year=Original Price×(1−0.20)\vB{\text{Value After 1 Year}} = \vA{\text{Original Price}} \times (1 - 0.20) Value After Year n=Value After Year (n−1)×(1−0.15)for n>1\vB{\text{Value After Year } n} = \vB{\text{Value After Year } (n-1)} \times (1 - 0.15) \quad \text{for } n > 1

Each year’s loss applies to whatever value REMAINS at the start of that year, not the original price — the same way compound interest builds on a growing balance rather than the starting amount alone, just working in reverse.

Worked Example

A $30,000 car after 3 years of ownership:

  1. After year 1: 30,000×0.80=$24,000\vA{30{,}000} \times 0.80 = \vB{\$24{,}000}.
  2. After year 2: 24,000×0.85=$20,400\vB{24{,}000} \times 0.85 = \vB{\$20{,}400}.
  3. After year 3: 20,400×0.85=$17,340\vB{20{,}400} \times 0.85 = \$17{,}340.

The car is estimated to be worth about $17,340 — roughly 58% of its original price — after three years of ownership.

Source: Wikipedia: Depreciation.

Frequently Asked Questions

How much does a new car depreciate?

A commonly-cited estimate across consumer-auto sources is that a new car loses roughly 20% of its value in the first year, then roughly 15% of its remaining value each year after that — though the exact rate varies a lot by brand, model, and how well a specific vehicle holds its value.

Why does the depreciation rate change after the first year?

The first year sees the sharpest drop — a new car becomes a 'used car' the moment it's driven off the lot, plus early-life mileage and wear. After that, value loss slows to a steadier year-over-year rate as the vehicle ages more gradually.

Does this account for mileage or condition?

No — this applies a general depreciation curve based only on original price and years owned. A vehicle driven far more or less than average, or in notably better or worse condition than typical, would resell for more or less than this estimate.