Car Depreciation Calculator
See how much value a car loses each year and what it will be worth in the future.
Last updated · View algorithm, constants and default inputs (JSON)
About this calculator
Use this as a USD scenario, not a market valuation. Enter your own first-year and later annual depreciation assumptions; actual resale value depends on the vehicle, condition, mileage and local market. Mileage affects the per-mile quotient here, not the projected value.
Worked example
calculated with the default values below
Purchase price (USD) 35,000 USD · Years to project 5 years · First year depreciation 20 % · Annual depreciation after that 15 % · Miles per year 12,000 mi Value after the period 14,616 USD · Total depreciation 20,384 USD · Average loss per year 4,077 USD/year · Depreciation per mile 0.340 USD/mi · Value retained 41.8 %
General background references
Disclaimer
These calculators give estimates for general information only. Real fuel consumption, performance and range vary with driving style, load, terrain, temperature and vehicle condition. Do not rely on these results for towing limits, payload or braking decisions — use the rating plate of your vehicle.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
V = { P(1 − f ÷ 100)(1 − l ÷ 100)^(y−1), y > 1; P(1 − f·y ÷ 100), y ≤ 1 }
- V
- Current value
- P
- Original price
- f
- First-year depreciation, %
- l
- Annual depreciation after year 1, %
- y
- Years owned
Piecewise rule; year 1 is prorated linearly. Loss per mile = (P − V) ÷ (annual miles × y).
Frequently asked questions
How does this model calculate depreciation per mile?
It reduces the initial price by the entered first-year rate and then by the later annual rate for each additional year. At the defaults, $35,000 becomes about $14,616 after five years. Depreciation per mile divides the modeled total loss by annual miles × years. Changing miles changes that per-mile quotient but does not change the estimated resale value; the model does not account for mileage-based market value.