Car Depreciation Calculator

Use this calculator to easily calculate the future value of a car or similar vehicle based on its initial cost and duration of exploatation. Estimate car depreciation after N years of exploitation.

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Using the Car Depreciation calculator

To use the calculator, simply enter the purchase price of the car and the age at which the car was when it was purchased by you (0 for brand new, 1 for 1-year old, etc.). If you leave the "Depreciation period" field empty the calculator will output the depreciation over the next 8 years. If you know when you intend to sell your car, e.g. 5 years after the date of purchase, enter "5" in this field and you will see the value of the vehicle after 5 years, the percentage depreciation and the absolute loss of dollar value.

Optionally, you can select the rate at which you expect the car to depreciate: low, medium or high. Here is a comparison of the three curves:

car depreciation rates

As you can see most cars lose most value the first-year after they are purchased, then lose less value until they are about 10-year old, after which the rate of value loss decelerates even further. The numbers used in the calculator are based off industry-wide averages and should be used for guidance only. The actual depreciation of your car will vary depending on level of maintenance, miles driven, market conditions, price of relevant fuel, etc.

Basics of car value depreciation

Depreciation is the negative change in the value of a car when you consider it at some point in the future, e.g. when you intend or expect to replace the car with a newer one. A car starts depreciating in value the moment it is acquired by a buyer, usually by as much as 10%. It's worth then decreases drastically during its first year of exploitation, usually dropping between 15-30%. From then onward it decreases at a lesser rate each year as new better cars enter the market while the vehicle increases its mileage and experiences wear and tear. Depreciation slows down around 9-10 years in.

While depreciation depends on factors the owner can influence, such as good maintenance, low usage on good roads, etc. it also loses value due to external conditions such as market changes, consumer preference changes, and increasing regulatory requirements, among others. Therefore, it is wise to consider whether to purchase a brand new car which is likely to depreciate quickly in the first couple of years, or buy a second-hand car which will depreciate at a slower pace. Depreciation only matters if you plan on selling the car and getting a replacement. If you plan on sticking to your car for many years then it is less of an issue.

Financial caution

This is a simple online APY calculator which is a good starting point in estimating the interest rate and returns from a bank deposit or a similar investment, but is by no means the end of such a process. You should always consult a qualified professional when making important financial decisions and long-term agreements, such as long-term bank deposits. Use the information provided by the calculator critically and at your own risk.

Cite this calculator & page

If you'd like to cite this online calculator resource and information as provided on the page, you can use the following citation:
Georgiev G.Z., "Car Depreciation Calculator", [online] Available at: URL [Accessed Date: 03 Apr, 2020].