Car Depreciation Calculator
Estimate how much value your car loses over time. Enter the purchase price, years of ownership, and depreciation rate to see the projected value and cost of depreciation per mile driven.
Car depreciation is the loss of value that occurs as a vehicle ages. It is the single largest cost of vehicle ownership, often exceeding fuel, insurance, and maintenance costs combined.
New cars depreciate fastest in the first year, losing an average of 20-25% of their value. After the first year, depreciation slows to approximately 15% per year for years 2-5. By year 5, a typical car retains only about 40% of its original purchase price. By year 10, it retains about 20-25%.
Factors that affect depreciation include make and model (luxury cars depreciate faster than economy cars), mileage (higher mileage accelerates depreciation), condition, color (neutral colors hold value better), and market demand. Buying a 2-3 year old used car is often the best value proposition, as you avoid the steepest depreciation while getting a relatively new vehicle.