Car Depreciation Calculator

A car is a depreciating asset, it loses value the moment you drive it off the lot and continues to decline with age and mileage. Understanding how much value your vehicle will lose helps you make smarter decisions about buying, selling, and holding onto a car. This Car Depreciation Calculator models four depreciation patterns: Standard, Aggressive, Conservative, and Custom. It uses your purchase price, current age, annual mileage, and projection period to generate a detailed schedule of value over time. You’ll see the current value, total loss, percentage retained, and the projected value at the end of your chosen period. The calculator supports 22 currencies and includes a year-by-year table and a visual depreciation curve. All calculations run in your browser, keeping your financial data private.

How to Use the Car Depreciation Calculator

1. Select your currency from the dropdown menu.

2. Enter the purchase price of the vehicle when new.

3. Input the car’s current age in years (0 for new).

4. Enter your annual mileage in miles per year.

5. Set the projection period in years (1–25).

6. Choose a depreciation method: Standard, Aggressive, Conservative, or Custom.

7. If you selected Custom, enter your first-year depreciation rate.

8. Click Calculate to view the depreciation analysis.

9. Review the current value, total depreciation, value retained, and end value.

10. Check the progress bar and depreciation curve for visual context.

11. Review the year-by-year breakdown table for detailed values.

12. Read the analysis and recommendation for insights on value retention.

13. Use the quick example buttons to test economy, luxury, truck, sports, and EV scenarios.

14. Copy, share, or embed your results using the buttons below.

How the Car Depreciation Calculator Formula Works

The calculator builds a depreciation schedule from year 0 to the end of the projection period.

Year 1 Depreciation:
Year 1 Value = Purchase Price × (1 − First-Year Rate)

Subsequent Years:
Value(t) = Value(t−1) × (1 − Subsequent Rate)

Floor: The value never drops below 5% of the original purchase price.

Depreciation Method Rates:

• Standard: 20% year 1, then 15% per year

• Aggressive: 25% year 1, then 18% per year

• Conservative: 15% year 1, then 10% per year

• Custom: user-defined first-year rate, then 75% of that rate for subsequent years

Current Value:
If the car age is a whole number, the value is taken directly from the schedule. If fractional, the calculator interpolates linearly between the two nearest years.

Metrics:

• Total Depreciation: Purchase Price − Current Value

• Value Retained: (Current Value ÷ Purchase Price) × 100

• End Value: Value at the end of the projection period

Worked Example

A buyer purchases a new car for $35,000 and wants to see its value after 5 years using the Standard depreciation method.

Step 1 – Build the depreciation schedule:

• Year 0: $35,000

• Year 1: $35,000 × (1 − 0.20) = $28,000

• Year 2: $28,000 × (1 − 0.15) = $23,800

• Year 3: $23,800 × (1 − 0.15) = $20,230

• Year 4: $20,230 × (1 − 0.15) = $17,196

• Year 5: $17,196 × (1 − 0.15) = $14,616

Step 2 – Current value after 5 years:
$14,616

Step 3 – Total depreciation:

$35,000 − $14,616 = $20,384

Step 4 – Value retained:

($14,616 ÷ $35,000) × 100 = 41.8%

Step 5 – Classification:
Standard depreciation, typical for mainstream sedans and SUVs. The biggest loss happens in year 1: $7,000 (20%).

Interpretation:
“Purchase price: $35,000. After 5 years (standard method), the car is worth $14,616, a total depreciation of $20,384 (58.2%). By year 10, the value will be approximately $6,257 (17.9% of original). Your car has retained 41.8% of its value.”