Car depreciation calculator

Estimated final value $11,092.63

Total loss: $13,907.37
First-year loss: $3,750.00

Cars lose value fast, especially in the first year (often 15-25%). Estimate the resale value to sell or trade in at the best time. For guidance only.

This car depreciation calculator estimates a car’s resale value after a set number of years, based on its initial price and an annual depreciation rate.

Why cars lose value so fast

Cars are one of the fastest-depreciating things people buy. Most of that loss happens early: a new car can lose 15-25% of its value in the first year alone, then keep depreciating at a slower, fairly steady rate each year after.

How it’s calculated

The calculator applies the depreciation rate every year to the previous year’s value (declining-balance method), so the dollar amount lost gets smaller each year even though the percentage stays the same. With a $25,000 car depreciating at 15% a year, it’s worth roughly $11,093 after 5 years — a total loss of about $13,907, with $3,750 of that in the first year alone.

FAQ

How much does a car depreciate per year?

It varies by make, model and mileage, but a common range is 15-25% in the first year and 10-15% a year after that. Electric and luxury cars can depreciate faster in the first few years.

Why is the first year's loss the biggest?

A car stops being 'new' the moment it's driven off the lot, which triggers the steepest single drop in value. After that, depreciation slows down and follows a more gradual curve.

Is this calculation exact?

No — it's an estimate using a constant annual depreciation rate (declining-balance method). Real resale value also depends on mileage, condition, demand and market trends.