Car Depreciation Calculator
See how much value a car loses year by year, from your own car’s real numbers or from generic rates by category and mileage
Take the current value from a few listings of the same model, year and mileage, or from a dealer quote. The tool works out your car’s own yearly rate and projects it forward.
Depreciation Estimate
| Year | Value | Total Lost |
|---|
How to use this tool
- Keep “From my car’s real values” selected and enter what you paid, what the car is worth today (from listings or a dealer quote) and how many years ago you bought it.
- Or switch to the quick estimate, enter the price new and choose a category and annual usage.
- Set how many years to project with the slider or the number box.
- Read the projected value, the value lost and the year-by-year table.
Worked example
A standard mid-size car bought new for 35,000 with average mileage loses 20% in year 1, leaving 28,000, then 10% a year: 25,200 after year 2, 22,680 after year 3 and 20,412 after year 4. After five years the estimate is 18,371, a total loss of 16,629 (about 47.5%). Switch the category to luxury (25% then 15%) and the same price falls to about 13,703 after five years. The rates are generic planning assumptions, not market data, so compare the result with real listings for your model. With your own values instead: 30,000 paid two years ago and 24,000 today means your car loses about 10.56% a year, and five years from now it would be worth about 13,738.
Methodology
This tool uses a simplified declining-balance (exponential decay) model: each year the vehicle loses a fixed percentage of its remaining value, so value after n years = price × (1 − r1) × (1 − r)^(n−1). The category rates are generic illustrative assumptions, not market data for any specific make or model. Worked example: a 30,000 standard car with average mileage loses 20% in year 1 (24,000) and 10% in year 2 (21,600) and year 3 (19,440), a total loss of 10,560 or 35.2%. Own-values mode (default): from what you paid (P), what the car is worth now (V) and its age in years (n), the average yearly rate is r = 1 − (V ÷ P)^(1/n), and the projection applies that same rate to the current value. Example: 30,000 paid two years ago and 24,000 today give r = 10.56% a year, so the car would be worth about 13,738 five years from now.
What a 25,000 car is worth after 1, 3 and 5 years
Values the tool returns for a car bought new at 25,000, by category, at average mileage unless noted. Figures are rounded to whole numbers, exactly as the results table shows them.
| Category | After 1 year | After 3 years | After 5 years |
|---|---|---|---|
| Economy | 21,250 | 17,986 | 15,223 |
| Standard | 20,000 | 16,200 | 13,122 |
| Luxury | 18,750 | 13,547 | 9,788 |
| Electric | 17,500 | 12,644 | 9,135 |
| Standard, low mileage | 20,500 | 17,351 | 14,686 |
| Standard, high mileage | 19,500 | 15,101 | 11,694 |
How to read it: the first-year drop is the biggest in every row, and the gap between categories widens with time. After five years the Standard car keeps 52.5% of its price and the Electric one 36.5%. The mileage setting moves each yearly rate by 2 percentage points. The rates are generic planning assumptions, not market data for a specific model, so check real listings before you buy or sell.
Used Car Inspection Tools
Three tools for looking at a used car before you buy or sell: a code reader, a paint gauge and a tread gauge
ANCEL AD310 Classic Enhanced Universal OBD II Scanner
An OBD-II code reader that reads and clears engine fault codes, according to the listing. It can show stored codes when you look at a used car; a mechanic’s inspection goes further.
Car Paint Thickness Gauge
A paint thickness gauge, according to the listing. Uneven readings between panels can point to repainting, which is worth asking about.
Digital Tire Tread Depth Gauge
A digital tread depth gauge, according to the listing, to check the tires of a used car before you make an offer.
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Frequently asked questions
How do I find my own car’s depreciation rate? ▼
Choose “From my car’s real values”, then enter what you paid, what similar cars sell for today and how many years you have owned it. For example, 30,000 paid two years ago and 24,000 today is an average loss of 10.56% a year (1 − (24,000 ÷ 30,000)^(1/2)). The projection then applies that rate to the current value.
Is the first year really the worst for depreciation? ▼
Usually, yes. New cars typically lose the largest share of their value in the first year, often around 15% to 25% depending on the model and market, as they move from the “new” to the “used” market.
Will the result match what a dealer would offer for my car? ▼
Not necessarily. The tool applies a generic yearly loss rate for the vehicle category, adjusted by your mileage level, so the result is an estimate. It does not know your car's brand, trim, condition, accident history or local market demand, all of which can move real trade-in or resale prices up or down.
How is this different from straight-line depreciation, and what do the results leave out? ▼
Straight-line depreciation subtracts the same amount every year, which would eventually reach zero. A declining-balance model subtracts a percentage of what is left, so the euro or dollar amount lost shrinks each year while the value never reaches zero, which is closer to how used cars usually behave. The results leave out financing costs, taxes, optional extras, color, model-year changes, recalls and the difference between private-sale, trade-in and dealer retail prices. Use the output for budgeting a rough range, and check listings of comparable cars before deciding to buy or sell.