Car Depreciation Calculator
Project what your car will be worth in a few years — and how much value it quietly loses every year you own it.
Your numbers
Value after 5 years
$15,530
Total lost to depreciation
$19,470
Value retained
44.4%
Insight — Depreciation compounds: each year's loss is a percentage of a shrinking value, so the steepest drop is in year one. Buying a 2–3 year-old car lets the first owner absorb that first cliff for you.
What if Years owned changes?
| Years owned | Value after 5 years |
|---|---|
| 3 yrs | $21,494 |
| 5 yrs · now | $15,530 |
| 7 yrs | $11,220 |
| 10 yrs | $6,891 |
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Know your benchmark here, then compare real quotes from several carriers — prices for the same driver vary a lot.
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For context: published industry figures (e.g. KBB/Edmunds residual data) show a typical new car retaining roughly 40–45% of its sticker price after five years — a 15% annual rate is a realistic middle-of-the-road assumption you can adjust above.
Good to know
Clear, practical answers about the car depreciation calculator.
How fast does a car depreciate?＋
Most new cars lose around 15–20% of their value in the first year and roughly 15% per year after that, leaving them worth about 40% of the original price after five years. Luxury and EV models can depreciate faster; some trucks and reliable compacts hold value better.
Is depreciation compounded or straight-line?＋
Real-world depreciation compounds. Each year's loss is calculated on the car's current value, not the original price — which is why this calculator multiplies the value by (1 − rate) for every year rather than subtracting a flat amount.
How can I lose less money to depreciation?＋
Buy slightly used to skip the first-year cliff, choose models with strong resale reputations, keep mileage and condition reasonable, and avoid trading too often. Depreciation is usually the single largest cost of ownership — bigger than fuel or repairs.
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