Car Depreciation Calculator

Our car depreciation calculator helps you see how your vehicle’s value changes over time. Enter your make, model, year, purchase price, mileage, and condition to get a full breakdown of your car’s depreciation rate and current market value. The tool also shows a detailed depreciation chart, resale value by year, and cost per mile. You can use it to plan the best time to sell your car, compare resale value between brands, or track how fast your car loses value. It works for any make or model and updates instantly on mobile or desktop.

How to Use the Car Depreciation Calculator

We created this calculator to show people how their car’s value drops over time. It’s easy to use and works on any device anywhere around the world. Start by entering your vehicle’s make, model, body type, year, and purchase price. Then add your current mileage, average annual distance, and pick the condition that best matches your car. The calculator will estimate your current market value, yearly depreciation, and future resale price so you have a better idea.

You can also choose how the depreciation is calculated:

• Market curve – best for real-world resale values based on typical market trends.
• Straight line – evenly spreads depreciation each year, useful for accounting.
• Double declining balance – applies heavier depreciation in the first few years, good for business vehicles.

For example, if you bought a 2020 Honda CR-V for $38,000, entered 60,000 km, and marked the condition as very good, the calculator might show your car’s value at around $28,500 today, meaning you’ve lost about $9,500 over four years. It will also show how much more value you’ll lose if you plan to sell in 2026 or 2027.

You can also test “what if” situations. Try changing the mileage or condition and watch the value update instantly. It’s a quick way to see how things like high mileage or minor damage can affect resale.

Car Depreciation Formula

The calculator uses a mix of market data and simple math to estimate your car’s value. Here’s how it works step-by-step:

1. Base Value
Start with your original purchase price.

2. Age Adjustment
Depreciation is applied based on the age of the car.
Typical rule: a car loses 15% to 25% of its value in the first year, and around 10% to 15% each year after.

3. Formula Used
Value = Base Price × (1 – Depreciation Rate) ^ Years Owned

4. Mileage Adjustment
Mileage is compared against the expected average (around 20,000 km or 12,000 miles per year).
If you drive more, the value drops faster. Example: a 5-year-old car with double the average mileage may lose another 10% to 15%.

5. Condition and Accident Impact
Condition adds or removes value.

• Excellent: +5%
• Fair: -10%
• Poor: -20%
  Accidents can lower value even more.
• Minor accident: -5%
• Major accident: -12%

6. Final Adjustment
Add brand and body factors. Some cars like Toyota, Honda, and Tesla hold value better, while others lose faster.

Example:
A 2018 Ford F-150 bought for $55,000 might show $31,000 in 2025. The same truck with heavy mileage or damage might be closer to $25,000.

Why Use the Car Depreciation Calculator

Most people guess what their car is worth and end up leaving money on the table. Our depreciation calculator will give you an estimate. It shows how your vehicle loses value year by year, so you can plan the best time to sell or trade in. Don’t buy or list a car for sale on marketplace before knowing the true numbers.

When I sold my 2017 GMC Sierra, I used this exact calculator first. It estimated the value at $25,000 with 160,000 km, and I listed it for $25,500. The truck sold within three days for exactly that. The estimate was spot on and saved me from underpricing it. I had extra money in my pocket, which my wife claimed as her money anyway. What’s mine is hers in the marriage case.

It’s also useful when you’re buying. I once looked at a 2019 Hyundai Tucson listed for $29,000. The calculator showed the fair market value was closer to $27,500. I used that to negotiate and got the price down by $1,200.

You can also use it to track how fast your car’s value is dropping, plan future purchases, or calculate the real cost of owning a car per year. It’s one of those tools that’s good for both sides — buyers and sellers.

Frequently Asked Questions About Car Depreciation

What does this car depreciation calculator do?
It estimates how much your car is worth today and how its value will change in the future. It includes current value, depreciation rate, cost per mile, and resale estimates.

How much value does a new car lose after one year?
Most new cars lose around 20% to 25% in the first year. After that, the drop slows to 10% to 15% per year depending on brand, mileage, and condition. A diesel truck will retain a much higher value over the long term.

Which cars hold their value best?
Brands like Toyota, Honda, Lexus, Tesla, and Subaru tend to keep more value over time. Luxury brands like BMW and Mercedes usually lose more in the first few years but can stabilize after year five.

How does mileage affect depreciation?
Mileage is one of the biggest factors. The calculator assumes an average of 20,000 km per year. Higher mileage lowers the value faster, while lower mileage can raise it slightly.

Can accidents or poor condition change the result?
Yes. Even a small accident can reduce value by about 5%, and major accidents can cut it by 10% to 15%. Poor condition or missing maintenance records also lower resale value.

How far ahead can I project depreciation?
You can check the next 10 years easily. The calculator will show estimated resale values for each year so you can plan when it’s best to sell.

Is this calculator accurate for electric cars?
Yes, but EVs can behave differently. Cars like Tesla Model 3 or Model Y hold value better due to strong demand, while older EVs with short range drop faster.

Can I use it for business or tax purposes?
You can use the straight-line or double-declining balance options for general accounting or fleet estimates. Always check local tax rules before using it for official reporting.

Final Thoughts

Depreciation is the biggest cost of owning a car, and most people never calculate it. This tool makes it easy to see how much value your car loses each year and how different factors – like mileage, condition, and brand – change the outcome.

It’s simple to use, works on any device, and gives real results that help you make smarter choices when buying, selling, or trading in a car. Before you list your vehicle or walk into a dealership, use this calculator first. It will give you the numbers you need to make a fair deal. In fact, open this calculator at the dealership when trading in your car.