Auto Loan Calculators
Car Depreciation Calculator
Project how much a vehicle loses in value each year and what it is likely to be worth when you sell.
Value at end
$16,312
- Total value lost
- $17,688
- Average loss per year
- $3,538
- Value retained
- 48%
Value each year
| Year | Value | Lost that year |
|---|---|---|
| 1 | $27,200 | $6,800 |
| 2 | $23,936 | $3,264 |
| 3 | $21,064 | $2,872 |
| 4 | $18,536 | $2,528 |
| 5 | $16,312 | $2,224 |
How this calculator works
Value = price × (1 − first-year rate) × (1 − annual rate)^(years − 1)
- first-year rate
- the steep initial drop once the car leaves the forecourt
Example calculation
Illustrative example — not advice
Worked example — the car depreciation calculator as it loads, using the default figures below.
- 01Enter purchase price: $34,000.
- 02Enter first-year depreciation: 20%.
- 03Enter depreciation thereafter: 12%.
- 04Enter years owned: 5 years.
- 05Read the value at end from the results panel: $16,312.
Value at end: $16,312. Total value lost: $17,688. Average loss per year: $3,538. Value retained: 48%.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Mileage, condition and model demand move resale values considerably.
- Buying a two- or three-year-old car avoids the steepest part of the curve.
Related calculators
- Lease vs Buy CalculatorTotal cost of leasing against buying.
- Cost Per Mile CalculatorThe true cost of every mile you drive.
- Car Affordability CalculatorThe car price a monthly budget supports.
- Auto Loan CalculatorMonthly vehicle payment after deposit, trade-in, tax and fees.
- Auto Loan Payoff CalculatorEarly payoff date and interest saved.
- Auto Refinance CalculatorSavings from refinancing a car loan.
Terms used here
Frequently asked questions
Why is the first year so severe?
A new car becomes a used car the moment it is registered, and the market prices that difference immediately.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01