Car Depreciation Calculator
Enter the car’s value and depreciation rates to see what it will be worth in a few years.
Results
- Value after 5 years
- Total depreciation
- Depreciation as a percentage
- Average loss per year
Rates are averages; mileage, condition, brand and the used-car market move the real figure.
The true cost of a car is not just fuel and servicing; the biggest item is usually depreciation. A new car typically loses close to a fifth of its value in the first year and 10–15% a year after that.
The calculator lets you set separate rates for the first year and later years and shows the value at the end of each year — so you can answer “what do I lose if I sell in three years?”.
How to calculate Car depreciation
- Enter the car’s current value.
- Enter the first-year and later-year depreciation rates.
- Enter the number of years, then check the final value and the yearly table.
Car depreciation formula
End of year 1 = value × (1 − first-year rate)Later years: value × (1 − annual rate)Total depreciation = starting value − final value
Car depreciation example
A 30,000 car losing 20% in year one and 15% a year after is worth 12,528 after 5 years — a loss of 17,472, or 58.2%.
Car depreciation: common questions
Which cars hold their value best?
Models in strong demand with low running costs, easy-to-find parts and a full service history depreciate more slowly.
How does mileage affect value?
Above-average mileage lowers it. Around 10,000–12,000 miles (15,000–20,000 km) a year is typical; use a higher rate if you drive more.
Is it better to buy nearly new?
Often, yes — the first owner absorbs the steep first-year drop. Set the first-year rate equal to the later rate to model a used car.