Car Depreciation Calculator

Enter your car's current value, purchase year, and annual mileage to see how much your vehicle depreciates each year. The Car Depreciation Calculator breaks down your car's estimated resale value year by year, total depreciation amount, and percentage of value lost — so you know exactly what your car will be worth when it's time to sell.

Enter the current market value or purchase price of your car.

Luxury and sports cars depreciate faster; trucks and SUVs tend to hold value better.

Results

Estimated Future Value

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Total Depreciation Amount

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Value Lost

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Average Depreciation Per Year

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Depreciation Cost Per Mile

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Car Value Over Time

Results Table

Frequently Asked Questions

How much does a car depreciate per year on average?

A new car typically loses about 15–25% of its value in the first year alone, then depreciates roughly 10–15% per year after that. By year five, the average car has lost around 40–60% of its original value. High-mileage use and luxury brands tend to accelerate this decline.

When does a car depreciate the most?

The steepest depreciation happens in the first year of ownership — often 20% or more the moment you drive off the lot. Years two through five continue to see significant drops, after which the rate of depreciation slows considerably as the car reaches a more stable resale value.

Does annual mileage affect car depreciation?

Yes, higher annual mileage accelerates depreciation because it increases wear and reduces the car's expected remaining life. The average driver covers around 12,000 miles per year; exceeding this benchmark lowers resale value, while low-mileage vehicles command a premium on the used car market.

Which types of cars depreciate the slowest?

Trucks, SUVs, and certain Japanese brands (like Toyota and Honda) are known for the best resale value retention. Vehicles with strong reliability reputations, low cost of ownership, and broad market demand tend to hold their value better over time.

What is the difference between fast and slow depreciation models?

Luxury, exotic, and sports cars typically depreciate faster because they appeal to a narrower buyer pool and carry higher maintenance costs. Trucks and mainstream SUVs depreciate more slowly due to consistent demand, durability, and strong work-utility appeal. A standard sedan falls in between these two extremes.

Is buying a used car better from a depreciation standpoint?

Generally, yes. Buying a car that is 2–3 years old lets someone else absorb the steepest depreciation hit. You get a nearly-new vehicle at a significantly reduced price, and the remaining depreciation curve is much flatter than that of a brand-new purchase.

Can I use this calculator to decide when to sell my car?

Absolutely. The year-by-year depreciation schedule shows you exactly when your car's value drops most sharply, helping you time a sale to maximize your return. In general, selling before major depreciation milestones — such as the 5-year or 100,000-mile mark — will yield a better resale price.

How does depreciation affect the true cost of car ownership?

Depreciation is often the single largest cost of owning a car, outweighing fuel, insurance, and maintenance combined. Understanding your car's depreciation rate helps you calculate the real cost per mile and make smarter decisions about buying, selling, or leasing your next vehicle.

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