Car Depreciation Calculator

A car is a depreciating asset, which means its biggest cost is not fuel or insurance but the value it loses simply by existing. New cars drop fastest in the first year, often by ten to twenty per cent, then continue declining at a slower rate. Over five years a typical car may keep less than half its original price, and that vanished value is a real cost paid by the owner. The pattern is not linear. Depreciation is steepest early, when the car stops being new, and gentlest late, when it is old enough that buyers price condition rather than age. This is why buying a two- or three-year-old car instead of a new one can save a large share of the loss: someone else absorbed the steep first years, and the car is little different to drive. Brand, model, mileage and condition all bend the curve. Cars with strong demand and a reputation for reliability hold value better; rare colours, heavy mileage and accident history hold it worse. Fuel prices and new-car incentives also shift used values, so no single rate fits every car — the percentage is a planning assumption, not a fact. This calculator projects value year by year at a depreciation rate you choose, and shows the annual cost of that loss. Use a rate near fifteen per cent for a typical new car, higher for a fast-depreciating model and lower for one that holds value well. Treat the output as an estimate for ownership budgeting and check real listings for your model to refine it.

This calculator returns estimates for general information only. It is not financial, investment, tax or legal advice, and it cannot replace guidance from a qualified professional who knows your circumstances. Figures such as loan payments, investment growth and retirement projections are simplified models based on the inputs and assumptions you provide, not guarantees of future results.