Car Depreciation Calculator
What a car will be worth after each year, and how much value it loses.
Good to know. A new car loses the most value in its first year. A two-year-old car lets someone else pay for that.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
The first year takes off the first-year rate; every year after takes off the yearly rate from what is left. Multiply the price by what remains each year.
The formula
value after n years = price × (1 − first-year rate) × (1 − yearly rate)ⁿ⁻¹
Worked example
A 35,000 car losing 20% in its first year and 15% a year after that is worth 28,000 after a year and 14,616.18 after five, having lost 58% of its price.
Sources
- Carfax, car depreciation New cars commonly lose about 20% of their value in the first year and around 15% a year for the next few.
Sources checked October 3, 2026. 4 automated tests check its answers on every change.
About the car depreciation calculator
Depreciation is the value a car loses as it ages, and for most owners of newer cars it is the largest single cost of owning one. It is quiet: you pay it all at once, when you sell or trade in.
The drop is steepest at the start. A new car commonly loses about 20% of its value in the first year, as it stops being new, and then around 15% a year for the next several years. After about five years the yearly loss in money gets smaller, because it is a share of a smaller value.
These are averages and the spread is wide. Popular, reliable models, pickups and some hybrids hold their value well; luxury cars and models with heavy discounts new often lose more. Mileage, condition, accident history and colour move the real figure up or down, so check listings for the same model and age.
Buying a car a year or two old lets the first owner take the biggest hit. The cost of owning a car calculator adds depreciation to fuel, insurance and upkeep, and the lease calculator uses the same idea: a lease charges you for the value lost while you drive.
Questions people ask
How much does a car depreciate per year?
Commonly about 20% in the first year and around 15% a year after that, though some models lose much less and others more.
How much will my car be worth in 5 years?
At 20% then 15% a year, about 42% of the price: a 35,000 car would be worth about 14,600.
Which cars hold their value best?
Typically popular, reliable models with low running costs. Check used listings for the same model and age to see.