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Auto Depreciation Calculator

AutomotiveVehicle Ownership Costs

Count from the year you bought the car.

A share of the value at the start of each year. New cars often lose about 15–20%.

Estimated value now —
Total value lost
—
Share of price lost
—
Average loss per year
—
Loss in the first year
—
Car value by year
The chart appears with your result

A car's value after n years is its price multiplied by (1 − yearly loss)^n. A $30,000 car that loses 20% of its value each year is worth $30,000 × 0.8³ = $15,360 after three years, so it has shed $14,640, or 48.8% of what was paid.

About this tool

Depreciation is usually the largest cost of owning a car, larger than fuel or insurance in the first few years, yet it never shows up as a bill. This calculator takes the purchase price, how many years you have owned or plan to own the car, and the share of value it loses each year, then shows the estimated value now, the total lost, the average loss per year and a table of each year's start value, loss and end value. A line chart traces the curve, which you can download as PNG, SVG or CSV. The model applies one constant percentage to a shrinking balance, so the biggest drops come first. Real prices also move with mileage, condition, model reputation and the used-car market, so treat the figure as an estimate, not an appraisal.

How to use it

  1. Enter the purchase price

    Type what you paid, or the current price if you are valuing a car you are about to buy.

  2. Set the years owned

    Use the − and + buttons to pick from 1 to 30 years.

  3. Choose the yearly loss

    Drag the slider or type a percentage; 15–20% suits many new cars, 10% suits older ones.

  4. Read the table and chart

    Check each year's loss in the table and the shape of the value curve in the chart.

Examples

$30,000 car, 20% a year, 3 years

Purchase price
30000
Years owned
3
Value lost each year
20

Result Estimated value now: $15,360.00
Total value lost: $14,640.00
Share of price lost: 48.8%
Average loss per year: $4,880.00
Loss in the first year: $6,000.00

  1. Value = $30,000.00 × (1 − 20%)^3
  2. Value = $30,000.00 × 0.512 = $15,360.00
  3. Value lost = $30,000.00 − $15,360.00 = $14,640.00

Each year takes 20% of what is left, so the first year costs $6,000 and the third only $3,840. After three years the car keeps 51.2% of its price.

$20,000 car kept five years

Purchase price
20000
Years owned
5
Value lost each year
15

Result Estimated value now: $8,874.11
Total value lost: $11,125.89
Share of price lost: 55.6%
Average loss per year: $2,225.18
Loss in the first year: $3,000.00

  1. Value = $20,000.00 × (1 − 15%)^5
  2. Value = $20,000.00 × 0.4437 = $8,874.11
  3. Value lost = $20,000.00 − $8,874.11 = $11,125.89

At 15% a year the value multiplies by 0.85 five times, 0.4437 in all, leaving about $8,874.

How it is calculated

V = P × (1 − d)^n

V
estimated value after n years
P
purchase price
d
yearly loss as a decimal (15% = 0.15)
n
years owned

This is the declining-balance model: each year the car loses the same percentage of whatever value it had at the start of that year. Because the base keeps shrinking, the dollar loss falls every year even though the percentage stays the same. Total loss is P − V, and the average yearly loss is that total divided by n.

When not to use it

  • Do not use it as a trade-in quote; dealers price on mileage, condition and local demand.
  • Classic and collector cars can gain value, which this model cannot show.
  • For tax depreciation of a business vehicle, follow your tax authority's schedules instead.

Common mistakes

  • Applying the loss to the original price every year, which overstates depreciation.
  • Using a new-car percentage for a ten-year-old car that now loses value slowly.
  • Leaving out the first-year drop when a car is bought new.

Frequently asked questions

How much does a new car lose in its first year?

Many new cars lose somewhere around 15–25% of their price in the first year, with the steepest part of that happening as soon as they are registered. Setting the slider to 20% with one year owned shows what that means for your price: $40,000 becomes $32,000.

Why does the dollar loss get smaller each year?

The percentage is applied to the value at the start of each year, not to the original price. A $30,000 car losing 20% drops $6,000 in year one, $4,800 in year two and $3,840 in year three, because each year starts from a lower value.

What yearly percentage should I enter for a used car?

Older cars usually lose a smaller share each year, often around 10–15%. Look up what similar cars one or two years older sell for, work out the percentage gap, and use that figure for the most realistic result.

Does mileage change the result?

Not directly. The model has no mileage input, so a car driven far more than average will likely be worth less than the estimate. Raise the yearly percentage a few points to account for heavy use.

Is this the same as straight-line depreciation?

No. Straight-line removes the same dollar amount every year and reaches zero at a set date. The declining-balance model here removes a fixed percentage, so the value approaches zero but never reaches it, which matches how used-car prices tend to behave.

Can I use it to compare two cars before buying?

Yes. Run each car's price with the percentage you expect for its model and compare the total value lost over the years you plan to keep it. A cheaper car that holds value better can cost less to own.

Cite this tool

Using this tool in an assignment, article or report? Copy a citation, or a link for your website.

APA

Tools Directory Editorial Team. (2026, October 9). Auto Depreciation Calculator. Tools Directory. Retrieved October 26, 2026, from https://tools.milunir.com/automotive/vehicle-ownership-costs/auto-depreciation-calculator/

MLA

Tools Directory Editorial Team. “Auto Depreciation Calculator.” Tools Directory, 9 Oct. 2026, https://tools.milunir.com/automotive/vehicle-ownership-costs/auto-depreciation-calculator/. Accessed 26 Oct. 2026.

Chicago

Tools Directory Editorial Team. “Auto Depreciation Calculator.” Tools Directory. Last modified October 9, 2026. Accessed October 26, 2026. https://tools.milunir.com/automotive/vehicle-ownership-costs/auto-depreciation-calculator/.

Link<a href="https://tools.milunir.com/automotive/vehicle-ownership-costs/auto-depreciation-calculator/">Auto Depreciation Calculator – Tools Directory</a>