Car Depreciation Calculator

Estimate your car's future resale value year by year using a realistic front-loaded depreciation curve.

Purchase price ($)

Years to project

Annual depreciation rate (%)

Estimated value after term

Total depreciation$0

Value retained0%

How car depreciation works

Depreciation is the single largest cost of owning a new car, and it's invisible until you sell. Most vehicles lose around 20% of their value in the first year and roughly 15% each year after, so a typical car retains only 40–50% of its sticker price after five years.

This calculator applies a front-loaded curve — a steeper 20% drop in year one, then your chosen steady rate thereafter — to project resale value year by year. Adjust the annual rate to match the segment: luxury cars and EVs often depreciate faster, while popular trucks and reliable compacts hold value better.

Buying used? Letting someone else absorb that first-year 20% hit is one of the most reliable ways to save money on a car. See our depreciation guide.

Frequently asked questions

Why do cars lose so much value in year one?

The moment a car is titled it becomes 'used.' Buyers won't pay new-car prices for it, and the gap between MSRP and real market value appears instantly.

Which cars hold value best?

Vehicles with strong reliability reputations, controlled supply, and high demand — many pickup trucks and certain compact and hybrid models — typically depreciate slowest.

Is depreciation tax-deductible?

For personal-use cars, no. Business-use vehicles may qualify for depreciation deductions; consult a tax professional.