Car Depreciation Calculator
Every car loses value over time. Depreciation is one of the biggest costs of ownership, even though it is easy to forget. Enter the current value and a yearly rate to project what the car should be worth in the years ahead.
Your numbers
Result
- Total loss
- $16,688.84
- Percent lost
- 55.63%
| Year | Estimated value |
|---|---|
| 0 | $30,000.00 |
| 1 | $25,500.00 |
| 2 | $21,675.00 |
| 3 | $18,423.75 |
| 4 | $15,660.19 |
| 5 | $13,311.16 |
How depreciation works
Depreciation is compound: each year the loss applies to the already-reduced value, with the formula value × (1 − rate)^years. A $30,000 car losing 15% a year is worth $25,500 after year one, $21,675 after year two, and about $13,311 after 5 years — a loss of more than 55%.
How fast cars depreciate
On average, cars lose 10% to 20% a year, with the steepest drop in the first year — a new car can shed 10% to 20% the moment it leaves the lot. Brand, demand, mileage and condition all matter. Models with strong resale demand hold their value better.
Depreciation in the cost of ownership
Depreciation is a real cost even though it never shows up as a monthly bill: it is the value you will not get back at resale. Including it in your cost per mile gives an honest picture of what the car costs. For anyone who trades cars often, it usually outweighs fuel.
Frequently asked questions
Sources
- Kelley Blue Book / Edmunds — vehicle depreciation data
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