As with any other product, a car depreciates over time. Many factors influence this, including the vehicle’s class, whether it was purchased new or used, the model year, mileage, and more.
You can calculate a car’s depreciation manually using special formulas or with our calculator. This method is more convenient and faster.
Simply enter the required data into the fields and click the button to calculate.
Car Depreciation Estimator
Estimate what your car will be worth in the years ahead — and how much value it loses along the way.
⚠ Please enter a price above 0 and at least 1 year to project.
| When | Estimated value | % of original |
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How it works. Cars lose the most value in year one, then depreciate more gently each following year. This tool applies a first-year drop and a lower rate to every year after it, compounding on the remaining value:
Value = Price × (1 − first-year rate) × (1 − yearly rate)^(remaining years)
An average car loses about 20% in the first year and ~15% each year after, so roughly 60% of its value is gone after five years. A car that already has some age skips the steep first-year drop.
Why it matters. Depreciation is usually the single biggest cost of owning a car — larger than fuel, insurance or repairs. Knowing the likely resale value helps you compare models, decide how long to keep a car, and avoid overpaying. Figures are estimates based on typical market averages, not a guaranteed valuation.
Formula used:
Value = Price × (1 − first-year rate) × (1 − yearly rate)^(remaining years)For an average car that’s a ~20% first-year drop and ~15% each year after, which lands near the well-known rule of thumb that a car loses roughly 60% of its value in five years (e.g. $30,000 → about $12,500).
If the car already has some age, it skips the steep first-year hit and just declines at the yearly rate — which is why used cars hold value better per year.