Quick answer
Estimated value = purchase price × (1 − yearly depreciation rate)^years. A $30,000 car losing 15% a year is worth $13,311.16 after 5 years, a total loss of $16,688.84 or 55.63% of the price.
Enter the purchase price, a yearly depreciation rate and the number of years. The calculator compounds the loss year by year.
Related tools: Lease vs Buy Calculator: Compare the cost of leasing with buying over the lease term.
How to use the Car Depreciation Calculator
- Enter purchase price ($) (above 0).
- Enter yearly depreciation (%) (between 0 and 100).
- Enter years (between 0 and 50).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Purchase price | A number, in $ | > 0 |
| Yearly depreciation | A number, in % | > 0, ≤ 100 |
| Years | A number | ≥ 0, ≤ 50 |
Formula and method
Formula
value = price × (1 − rate)^years
IEEE-754 double precision; shown to the decimals indicated.
Real depreciation is steepest in the first years and depends on the model, so choose a rate from market data.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Purchase price = 30000; Yearly depreciation = 15; Years = 5.
| Result | Value |
|---|---|
| Estimated value | $13,311.16 |
| Total depreciation | $16,688.84 |
| Share of price lost | 55.63% |
Example 2
Inputs: Purchase price = 45000; Yearly depreciation = 12; Years = 3.
| Result | Value |
|---|---|
| Estimated value | $30,666.24 |
| Total depreciation | $14,333.76 |
| Share of price lost | 31.85% |
Example 3
Inputs: Purchase price = 20000; Yearly depreciation = 20; Years = 8.
| Result | Value |
|---|---|
| Estimated value | $3,355.44 |
| Total depreciation | $16,644.56 |
| Share of price lost | 83.22% |
The first line is the headline result (estimated value). Below it the car Depreciation Calculator lists total depreciation and share of price lost, which describe the same case from other angles. IEEE-754 double precision; shown to the decimals indicated.
Why the loss is compounded
Each year's loss is taken from the value left at the start of that year, not from the original price. At 15% the car is worth $25,500 after year 1, $21,675 after year 2 and so on down to $13,311.16 after year 5. A flat 15% of the original price a year would wrongly reach zero in under seven years.
The rate is your assumption
Real cars tend to lose more in the first years and less later, and the rate varies by model, mileage and condition. Use a figure from a used-car price guide for your model, and treat the result as an estimate rather than a trade-in offer.
How the result changes with purchase price
Holding every other input at the first worked example, this table changes only purchase price. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Purchase price | Estimated value | Total depreciation | Share of price lost |
|---|---|---|---|
| 15000 | $6,655.58 | $8,344.42 | 55.63% |
| 30000 | $13,311.16 | $16,688.84 | 55.63% |
| 60000 | $26,622.32 | $33,377.68 | 55.63% |
| 120000 | $53,244.64 | $66,755.36 | 55.63% |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Purchase price: entering "0" shows "Purchase price must be greater than 0." beside that field and no result.
- Yearly depreciation: entering "0" shows "Yearly depreciation must be greater than 0." beside that field and no result.
Choosing between the Car Depreciation Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Lease vs Buy Calculator](/automotive/lease-vs-buy-calculator/) | purchase price, down payment and loan rate | Cheaper over the lease term |
| [Vehicle Payload Calculator](/automotive/vehicle-payload-calculator/) | gross vehicle weight rating and curb weight | Payload |
| [Depreciation Calculator](/finance/depreciation/) | asset cost, salvage value and useful life | Annual depreciation |
| [Tire Size Calculator](/automotive/tire-size-calculator/) | section width, aspect ratio and rim diameter | Overall diameter |
| [Fuel Cost Calculator](/automotive/fuel-cost-calculator/) | distance, fuel economy and fuel price | Trip cost |
Background: vehicle sizing and speed
A taller tyre travels farther per revolution, so the speedometer reads low and the effective gear ratio becomes numerically lower; a shorter tyre does the opposite. True speed is roughly the speedometer reading times the new tyre diameter divided by the old one. Verify with GPS over a known distance before changing parts.
Assumptions and limitations
- Rate is your assumption
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for purchase price and yearly depreciation to confirm this.
Frequently asked questions
How fast do cars depreciate?
Many sources put the first year at around 15 to 20% and the first five years at roughly 50 to 60%, but it varies by model.
Can I enter a rate per year that changes?
Not in one run. Run it in stages, using the value at the end of one stage as the price for the next.
Does mileage change the result?
Only through the rate you choose; the calculator does not read mileage.
What does the Car Depreciation Calculator calculate?
Estimated value after years of declining-balance depreciation at a rate you enter. It returns Estimated value, Total depreciation and Share of price lost.
What formula does the Car Depreciation Calculator use?
value = price × (1 − rate)^years. Real depreciation is steepest in the first years and depends on the model, so choose a rate from market data.
What do I need to enter in the car Depreciation Calculator?
You enter Purchase price ($), Yearly depreciation (%) and Years.
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. Rate is your assumption.
What is an example of a car Depreciation result?
With purchase price 30000, yearly depreciation 15 and years 5, the estimated value is $13,311.16.
Where does the method come from?
The method follows: Declining-balance depreciation.
Related calculators
- Lease vs Buy Calculator — Compare the cost of leasing with buying over the lease term.
- Tire Size Calculator — Overall diameter, sidewall height and revolutions per mile from a tire size such as 225/45R17.
- Fuel Cost Calculator — Trip fuel cost from distance, fuel economy and price.
- MPG Calculator — Miles per gallon from distance and fuel used.
- Wheel Offset Calculator — Wheel offset from width and backspacing.
- Golf Altitude Adjustment Calculator — Estimate how far a golf shot carries at a different elevation, using the Titleist R&D rule of thumb.
Sources
- Declining-balance depreciation
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.