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Car Depreciation Calculator

Estimate how much value your car loses each year and what it will be worth when you sell.

Updated June 2026 · Editorial standards

Your vehicle

$
yrs
yrs
%
%
Value at end
$6,485
Total depreciation
$28,515
Average per year
$2,852
Average per month
$238

Your car loses $7,000 in the first year alone — 20% of its purchase price. Over 10 years it depreciates $28,515, ending at $6,485 (about $238/month in lost value).

Car value over time

Value vs depreciation at end of ownership

Year-by-year value

YearValueTotal depreciation
0$35,000$0
1$28,000$7,000
2$23,800$11,200
3$20,230$14,770
4$17,196$17,805
5$14,616$20,384
6$12,424$22,576
7$10,560$24,440
8$8,976$26,024
9$7,630$27,370
By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the car depreciation calculator?

In short

Cars typically lose 15–25% of their value in the first year and roughly 10–15% of their remaining value each year after that. A $35,000 new car loses about $7,000 (20%) in year one, is worth roughly $14,600 after 5 years, and only about $6,500 after 10 years — a total depreciation of about $28,500, or nearly $240 per month of ownership.

This car depreciation calculator projects your vehicle's value year by year using a first-year depreciation rate and a subsequent annual rate, both adjustable. It shows the value at the end of your ownership period, total depreciation, and the average cost per year and per month — usually the largest hidden cost of car ownership.

How to use this calculator

  1. 1Enter the car's purchase price when new.
  2. 2Enter the vehicle's current age (0 for a brand-new car).
  3. 3Set how many years you plan to own it.
  4. 4Adjust the first-year depreciation rate (typically 15–25%) and the annual rate after that (10–15%).
  5. 5Review the value curve, total depreciation, and monthly cost of depreciation.

The formula

V=P×(1−d₁)×(1−d)t−1
Value after t years = Purchase Price × (1 − first-year rate) × (1 − annual rate)^(t − 1). Depreciation compounds on the remaining value, so dollar losses are biggest in the early years.
V
— Vehicle value after t years
P
— Original purchase price
d₁
— First-year depreciation rate
d
— Annual depreciation rate in later years
t
— Vehicle age in years

Worked example

The scenario

A $35,000 new car with 20% first-year depreciation and 15% annual depreciation thereafter, owned for 10 years.

gives

The result

Year 1 value: $28,000 (a $7,000 loss). Year 5: about $14,600. Year 10: about $6,500. Total depreciation over 10 years: roughly $28,500 — about $2,850/year or $237/month.

Common use cases

  • Estimating your car's future trade-in or resale value before buying
  • Comparing the true cost of buying new versus a 2–3 year old used car
  • Budgeting the real monthly cost of ownership (depreciation often exceeds fuel)
  • Deciding the optimal time to sell before value flattens out
  • Checking whether you risk being underwater on a low-down-payment car loan

Limitations & assumptions

  • Real depreciation varies widely by brand, model, mileage, condition, and market — trucks and Toyotas hold value far better than luxury sedans and EVs.
  • Used-market shocks (like 2021–22, when used prices rose) can temporarily break the curve.
  • Mileage is not modeled directly; high-mileage cars depreciate faster than the age curve implies.
  • Does not include other ownership costs such as insurance, maintenance, fuel, or financing interest.

Frequently asked questions

A typical new car loses about 20% of its value in the first year and 10–15% of its remaining value each year after. A $35,000 car drops to about $28,000 after year one, $24,000 after year two, and roughly $14,600 by year five — around 58% total depreciation in five years. By year ten it's often worth less than 20% of its original price.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.