Vehicle Depreciation Calculator
Project what a vehicle will be worth in future years and how much value it loses each year.
Your details
Assumptions
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
Value in 8 years
$11,541
25.6% of the $45,000 purchase price
Includes your inputs, the full breakdown, and every row of the table.
Total depreciation
$33,459
Average per year
$4,182
Depreciation per mile
$0.349
Often exceeds fuel cost per mile
First-year loss
$9,000
For a new vehicle
| Age | Value | Lost that year | % of original |
|---|---|---|---|
| 1 | $36,000 | $9,000 | 80.0% |
| 2 | $30,600 | $5,400 | 68.0% |
| 3 | $26,010 | $4,590 | 57.8% |
| 4 | $22,109 | $3,902 | 49.1% |
| 5 | $18,792 | $3,316 | 41.8% |
| 6 | $15,973 | $2,819 | 35.5% |
| 7 | $13,577 | $2,396 | 30.2% |
| 8 | $11,541 | $2,037 | 25.6% |
What this means
- Depreciation is the largest cost of owning a new vehicle — usually larger than fuel, insurance, and maintenance combined for the first few years.
- Buying a two- to three-year-old vehicle transfers the steepest part of the curve to someone else while still leaving most of the useful life.
How the vehicle depreciation calculation works
Vehicle depreciation is front-loaded. A new car typically loses 15-25% of its value in the first year and then settles into a slower 10-18% annual decline. The curve is exponential, not linear, which is why a five-year-old car retains far more than half the value it had at year three.
Model and segment matter enormously. Full-size trucks and a handful of SUVs hold value exceptionally well; luxury sedans and rapidly-improving EVs depreciate fastest. Mileage adjusts the curve — significantly above-average mileage accelerates the decline.
Frequently asked questions
How much does a new car depreciate driving off the lot?
The often-quoted instant 10% drop is really the gap between retail and wholesale value. The measurable first-year loss is typically 15-25% of the purchase price.
What cars hold value best?
Historically mid-size and full-size pickups, body-on-frame SUVs, and a few reliability-focused brands. Strong resale correlates with high demand for used examples and constrained new supply.
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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.