What depreciation model does this use?

It uses the declining-balance (reducing-balance) method — each year the value drops by a fixed percentage of the previous year's value, which mirrors how most cars lose value fastest early on.

What annual rate should I use?

Many cars lose roughly 15-20% of their value per year, with the first year often steeper. Adjust the rate to match your make, model and mileage expectations.

How much value does a new car lose in the first year?

New cars typically lose 15-25% in the first year alone, and around 50-60% over five years. Set a higher rate, or model the first year separately, if you are buying brand new.

Why does the yearly loss shrink over time?

Because declining-balance applies the percentage to a smaller value each year. A 15% drop on a $30,000 car is $4,500, but the next year's 15% is taken on a lower base, so the dollar loss falls year after year.

Is my vehicle or price data uploaded?

No — the calculation runs entirely in your browser and nothing is uploaded.

Car Depreciation Calculator

This calculator projects how a car’s value falls over time so you can estimate its future resale value, plan a trade-in, or compare the running cost of different vehicles. Enter the purchase price, an annual depreciation rate and the number of years, and it returns the projected value, the total amount lost, the percentage of value remaining, and a year-by-year breakdown.

How it works

It uses the declining-balance (reducing-balance) method, which mirrors how cars actually lose value — fastest early, then more slowly. Each year the value is multiplied by (1 − rate), so the loss is a fixed percentage of the previous year’s value rather than a flat amount:

value after n years = price × (1 − rate)ⁿ

The dollar loss therefore shrinks each year even though the percentage stays constant. Most cars depreciate at roughly 15-20% per year; adjust the rate to match the make, model and mileage.

Example

A $30,000 car at 15% per year over 5 years:

Year	Start value	Lost	End value
1	$30,000	$4,500	$25,500
2	$25,500	$3,825	$21,675
3	$21,675	$3,251	$18,424
4	$18,424	$2,764	$15,660
5	$15,660	$2,349	$13,311

After five years the car is worth about $13,311 — roughly 44% of its original price, with $16,689 lost. Everything runs in your browser, so nothing is uploaded.