Car Depreciation Calculator
A new car loses value the moment you drive it off the lot — and the losses keep coming. This free car depreciation calculator estimates your car's remaining value year by year, so you can see exactly how much value evaporates each year and decide when selling makes sense.
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Estimates. Depreciation rates are fixed-rate estimates; actual resale values vary by make, model, mileage, condition, and market demand.
How to use this calculator
Enter what you paid (or plan to pay) for the car, then set the annual depreciation rate. The default of 15% per year is a widely used average for new cars; lower it to 10–12% for a model with a strong resale reputation (think Toyota, Honda, Porsche), or raise it to 20–25% for a luxury car or an EV with fast-changing technology. Set "car's current age" to 0 for a new car, or the car's current age if you're checking a car you already own.
Everything recalculates instantly as you type, so try a few scenarios: compare your car at a 12% vs 18% rate, or extend the horizon to 8–10 years to see how the per-year cost flattens out the longer you keep the car. The year-by-year schedule shows the car's estimated value at the end of each year, the depreciation lost that year, and your running total loss — handy when you're deciding whether to sell, trade in, or hold.
How it works
This tool uses the declining-balance method: the car's value is multiplied by (1 − annual rate) each year. The formula is value = price × (1 − r)n, where r is the annual rate and n is the number of years. For example, a $30,000 car at 15% per year is estimated at 30000 × 0.855 ≈ $13,311 after 5 years — a first-year loss of $4,500.
That formula is a planning estimate, not a prediction of what a dealer will offer. Real depreciation is front-loaded (the first year is usually the steepest, often 20%+), and the rate varies with mileage, condition, color, brand reputation, accidents, and market shifts. If you already own the car, treat the "purchase price" as its current market value and set the current age for context — the schedule still projects forward at your chosen rate.
Note the difference from a total cost of ownership tool: depreciation is only the value loss. Fuel, insurance, maintenance, fees, and loan interest aren't included here — if you want the full picture of what a car really costs you, run this alongside CalcNest's Car Total Cost of Ownership Calculator.
Frequently asked questions
How much does a car depreciate per year?
On average, a new car loses roughly 15% of its value each year for the first five years, meaning about half its value is gone by year five. The first year is usually the steepest, with losses of 20% or more. These are estimates — your car's actual depreciation depends on make, model, mileage, condition, and market demand.
How is car depreciation calculated?
This calculator uses the declining-balance method: value after n years = purchase price × (1 − annual rate)^n. With a 15% annual rate, a $30,000 car is estimated at $13,311 after 5 years. It is an estimate, not a guarantee of resale value.
How is this different from a total cost of ownership calculator?
A depreciation calculator tracks only value loss over time — what your car is worth each year. A total cost of ownership calculator like CalcNest's adds everything else: fuel, insurance, maintenance, fees, and loan interest, to give the full lifetime cost of running the car.
When is a car worth selling to minimize depreciation losses?
Depreciation is steepest in the first 1–3 years, so selling very early usually means the biggest losses. Many owners keep a car 5–7 years, where per-year depreciation flattens out. Try different time horizons in the calculator to see how the annual cost drops as you keep the car longer.
Do electric vehicles depreciate faster than gas cars?
EVs have historically depreciated faster than comparable gas cars, partly because of rapid battery and technology improvements and price cuts on new models — some EVs lost 30–50% in the first few years. Set a higher annual rate (for example 20–25%) for an EV, or a lower one (10–12%) for a model with a strong resale reputation.