Car Depreciation Calculator
Work out what your car will be worth in a few years, how much value it loses and what that costs per month.
Value at the end
$14,616
Depreciation
$20,384
Depreciation per month
$339.73
Depreciation as a percentage
58.2 %
Value by year
- Value
Show the table
| Year | Value |
|---|---|
| 0 | $35,000 |
| 1 | $28,000 |
| 2 | $23,800 |
| 3 | $20,230 |
| 4 | $17,196 |
| 5 | $14,616 |
Please note: This is an example calculation, not financial advice. Personal circumstances, changes in rules and rates, and additional costs are not included. If in doubt, talk to a financial adviser.
An estimate with fixed percentages per year. The real value depends on make, mileage, condition and the market.
How this number is calculated
The blocks use your input. Change a value above and they update with it.
Step 1 · First-year factor
Step 2 · Factor for the other years
Step 3 · Value at the end
Step 4 · Depreciation
Step 5 · Depreciation per month
How the calculation works
Work out what your car will be worth in a few years. Enter the purchase price, its age when you buy it and the yearly depreciation, and see the value by year and what depreciation costs you per month.
A car loses a percentage of its current value every year, not of the price when new. So the value falls quickly at first and more slowly later. A new car usually loses more in the first year, which has its own percentage. For a used car, the same percentage applies every year. Depreciation per month is the total loss divided by the number of months.
Formula
New car: value after t years = price × (1 − first year ÷ 100) × (1 − yearly ÷ 100)^(t − 1). Used car: price × (1 − yearly ÷ 100)^t. Depreciation per month = (price − value) ÷ (years × 12).
Assumptions
- Depreciation is a fixed percentage of the current value every year.
- In reality make, model, mileage, damage and market demand make a big difference.
- Inflation and changes in new car prices are not included.
- The value is rounded to whole units, depreciation per month to the cent.
Example calculations
The button fills in the calculator above, so you can carry on from there.
-
New car
Value at the end
$14,616
Purchase price $35,000.00 · Age at purchase (years) 0 · Number of years 5 · First-year depreciation (%) 20 · Yearly depreciation after that (%) 15
-
Used car
Value at the end
$8,995
Purchase price $15,000.00 · Age at purchase (years) 4 · Number of years 4 · First-year depreciation (%) 20 · Yearly depreciation after that (%) 12
-
New electric car
Value at the end
$14,975
Purchase price $45,000.00 · Age at purchase (years) 0 · Number of years 6 · First-year depreciation (%) 25 · Yearly depreciation after that (%) 15
Frequently asked questions
How much value does a new car lose?
With the rule of thumb of 20% in the first year and 15% a year after that, a car bought for 35,000 is worth 14,616 after 5 years. The depreciation is then 20,384, or 339.73 a month.
Why does a car lose so much in the first year?
As soon as a new car is registered, it is a used car. Buyers pay clearly less for a one-year-old car than for a new one, even if it is almost the same.
Do electric cars depreciate faster?
In recent years, used electric car prices have often fallen faster, partly because of price cuts on new models and quick improvements in range. If in doubt, use a higher percentage, such as 25% in the first year.
Is depreciation a real cost?
Yes. You do not pay it every month, but you notice it when you sell or trade in. It is often the largest cost of owning a car, larger than fuel or maintenance. The car cost comparison shows it next to the other costs.
How do I find out what my car is really worth?
This calculator gives an estimate with fixed percentages. For the value of your own car, look at similar cars for sale, with the same year, similar mileage and trim.
Last reviewed:
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