Car depreciation calculator
Enter what you paid for a car and the percentage of value you expect it to lose each year. The calculator shows the estimated value after each year, the total loss and the loss as a percentage. The rate is your assumption: real values depend on the model, mileage, condition and market.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the purchase price of the car.
- Enter the percentage of value you expect it to lose each year.
- Choose how many years to show (up to 10).
- Read the value after each year and the total loss.
How it works
Value after n years = price × (1 − rate ÷ 100)^n. The total loss is the price minus the final value, and the share lost is that loss divided by the price.
Worked example
A car bought for 30,000 that loses 15% a year is worth 25,500.00 after year 1, 21,675.00 after year 2, 18,423.75 after year 3 and 13,311.16 after year 5. The total loss after five years is 16,688.84, or 55.6% of the price.
Tips
- A constant rate is a simplification. Many cars lose more in year one, so you can use a higher rate for a shorter period.
- Compare with real listings of similar used cars to test your rate.
Frequently asked questions
How is the car value calculated?
Each year the car loses the same percentage of its value at the start of that year. Value after n years = price × (1 − rate)^n. At 15% a year, a 30,000 car is worth 25,500 after one year and 21,675 after two.
What depreciation rate should I use?
There is no single right figure. Cars usually lose more in the first years and less later, and the rate depends on make, model, mileage and demand. Look at the asking prices of similar used cars to choose a rate for your model.
Why use a declining balance instead of equal amounts each year?
Used car values fall faster when the car is new, which a constant percentage of the remaining value reflects better than a fixed yearly amount. For an accounting schedule with a salvage value, use a depreciation calculator for assets.
Does this include mileage or condition?
No. Only the price, the rate and the years. High mileage or damage lowers the value further, so adjust the rate if you expect that.