Free Car Depreciation Calculator
This car depreciation calculator estimates how much value a new or used car loses each year and what it will be worth when you sell or trade it in.
How the car depreciation calculator works
The value after each year is the previous year’s value minus a percentage: the first-year loss for year one (20% by default) and the yearly loss for every year after (15% by default). These are typical starting points, not figures for a particular model. For a specific car, compare listings for the same model, age and mileage.
Car depreciation by year
| After | $25,000 car | $35,000 car | $50,000 car |
|---|---|---|---|
| 1 year | $20,000 | $28,000 | $40,000 |
| 2 years | $17,000 | $23,800 | $34,000 |
| 3 years | $14,450 | $20,230 | $28,900 |
| 5 years | $10,440 | $14,616 | $20,880 |
| 7 years | $7,543 | $10,560 | $15,086 |
| 10 years | $4,632 | $6,485 | $9,265 |
Depreciation and the cost of owning a car
Depreciation is often the largest cost of a new car, bigger than fuel or insurance in the first few years. It also matters if you borrow: a long loan can leave you owing more than the car is worth. Check the loan with the car payment calculator, compare a lease (where the payment is mostly depreciation) in the car lease calculator, and add running costs with the gas cost calculator.
Frequently asked questions
How much does a car depreciate per year?
A common rule of thumb is about 20% in the first year and around 15% a year after that. This car depreciation calculator uses those figures as defaults, and you can change them to match your model.
How much is a $35,000 car worth after 5 years?
At 20% in year one and 15% a year after, about $14,616, a loss of $20,384 (58% of the price).
Which cars hold their value best?
Popular pickup trucks, some SUVs and models with a reputation for reliability usually depreciate more slowly. Luxury sedans and fast-changing technology such as some electric cars often lose value faster.
Does mileage affect depreciation?
Yes. Cars driven well above about 12,000 to 15,000 miles a year usually sell for less than the same model with average mileage. Raise the yearly loss in the calculator to allow for high mileage.
Is this the same as car depreciation for taxes?
No. This car depreciation calculator estimates market value. Business vehicle depreciation for taxes follows IRS rules (Publication 946), which use different methods and limits.
Sources
Estimates only. Actual resale value depends on model, condition, mileage, location and the market.