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Car Depreciation Calculator
Car Depreciation
Predict the future resale value of your vehicle over time
$0
Estimated Resale Value
Total Loss
$0
Value Retained
0%
Monthly Loss
$0
Value Depreciation Curve
About the Car Depreciation Calculator
Estimate how much value a car loses over time to plan a purchase, a sale or a trade-in.
How to use the Car Depreciation Calculator
- Enter the Purchase Price ($) and the Vehicle Age (Years).
- Set the Depreciation Rate (%) and choose the Condition: Excellent, Good or Fair.
- Press Calculate.
Formula and method
Declining-balance method: Value = Price × (1 − rate)^years.
Worked example
A $30,000 car losing 15% a year is worth about $13,311 after 5 years.
Straight-line method. An asset that costs 20,000, has a salvage value of 2,000 and lasts 5 years loses (20,000 − 2,000) ÷ 5 = 3,600 in value each year.
When to use the Car Depreciation Calculator
- Spreading the cost of a business asset over its useful life.
- Preparing accounts or tax records.
- Estimating what a vehicle or a machine is worth after several years.
Common mistakes to avoid
- Using the wrong useful life for the type of asset.
- Forgetting the salvage (residual) value.
- Mixing up accounting depreciation and tax depreciation, which follow different rules.
Tips
- New cars lose the most value in the first one to two years.
- Mileage, maintenance history and popularity change the real figure.
Frequently Asked Questions
A common rule of thumb is around 15 to 20 percent in the first year and roughly 10 to 15 percent a year after that.
The estimated amount an asset can be sold for at the end of its useful life.
Straight-line spreads the cost evenly. Declining balance takes larger deductions in the early years.