Depreciation & Value Calculator
Car Depreciation Calculator
See how much your car loses in value year by year — and what it will be worth when you're ready to sell.
Vehicle Details
Enter 0 for a new car, or its current age.
Value After 10 Years
Retained: 34.6%
Total Lost
$26,155
Lost Year 1
$8,000
Value at 3 Years
$25,840
Value at 5 Years
$19,208
Value Over Time
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How car depreciation works.
Year 1: Value × (1 - 0.20)
Year 2-5: Value × (1 - 0.15) per year
Year 6+: Value × (1 - 0.10) per year
General rule: a new car loses ~50% of
its value within the first 3 years.
The 50% rule
Most new cars lose approximately 20% of their value in the first year alone — mostly the moment you drive off the lot. By year 3, the average car has retained only 50–60% of its purchase price.
Which cars depreciate slowest?
Toyota Tacoma, Jeep Wrangler, and certain Subaru models consistently top resale value charts. Luxury brands (BMW, Mercedes) and EVs often depreciate faster. Brand perception and supply/demand are the biggest factors.
Frequently asked questions.
How much does a car depreciate per year?
On average, a new car loses 15–25% of its value in year one and 10–15% per year after that. After 5 years, most cars have retained 35–50% of their original price. The exact rate varies widely by brand, model, and market demand.
What is the best age to buy a used car?
The "sweet spot" for value is typically 2–4 years old. The car has absorbed the steepest depreciation curve (year 1), still has remaining factory warranty, and is often significantly cheaper than new.
Does mileage affect depreciation?
Yes. The IRS standard mileage rate is a common proxy: cars exceeding 15,000 miles/year depreciate faster. High-mileage vehicles (100k+) are often worth 30–50% less than equivalent low-mileage examples.
Do electric cars depreciate faster?
Most EVs depreciate faster than their gas equivalents due to rapid technology changes and battery concerns. However, Tesla and certain popular models have held value better. Tax incentive availability and range anxiety also affect resale demand.