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Car Depreciation Calculator

Calculate your car's depreciation and current value

Current Value

$13,311

Total Depreciation

$16.7k

Depreciation %

55.6%

Annual Depreciation

$3.3k

$

Depreciation rate: 15% per year

Current Estimated Value

$13,311

after 5 years

Total Depreciation

$16,689

Depreciation %

55.6%

Annual Depreciation

$3,338

Value Comparison

Current Value$13,311
Total Depreciation$16,689

Frequently Asked Questions

Q

How do you calculate car depreciation?

Car depreciation is calculated using compound depreciation: Current Value = Purchase Price × (1 - Depreciation Rate)^Age. Depreciation rates vary by vehicle type: Luxury (20%), Standard (15%), Economy (12%), Trucks (18%) per year.

Q

How much does a car depreciate per year?

Cars typically depreciate 15-20% in the first year, then 10-15% per year after that. Luxury vehicles depreciate faster (20%+), while economy cars and trucks hold value better (12-18%). Most cars lose 50% of value in 3-5 years.

Q

What car holds its value best?

Vehicles that hold value best include: Toyota, Honda, Subaru (reliability), Trucks (utility), and certain luxury brands. Factors: brand reputation, reliability, demand, and vehicle type. Economy cars and trucks typically depreciate slower than luxury sedans.

Q

How can I minimize car depreciation?

To minimize depreciation: 1) Choose reliable brands, 2) Maintain the vehicle well, 3) Keep mileage low, 4) Avoid modifications, 5) Keep detailed service records, 6) Protect from damage, 7) Consider buying used (someone else took the initial hit).

Example Calculations

1$30,000 Standard Car After 5 Years

Inputs

Purchase Price$30,000
Vehicle Age5 years
Vehicle TypeStandard (15%/year)

Result

Current Estimated Value$13,311
Total Depreciation$16,689
Depreciation %55.6%
Annual Depreciation$3,338

Current Value = $30,000 x (1 - 0.15)^5 = $30,000 x 0.85^5 = $30,000 x 0.4437 = $13,311. Total lost = $30,000 - $13,311 = $16,689 (55.6%).

2$50,000 Luxury Car After 3 Years

Inputs

Purchase Price$50,000
Vehicle Age3 years
Vehicle TypeLuxury (20%/year)

Result

Current Estimated Value$25,600
Total Depreciation$24,400
Depreciation %48.8%
Annual Depreciation$8,133

Current Value = $50,000 x (1 - 0.20)^3 = $50,000 x 0.80^3 = $50,000 x 0.512 = $25,600. Luxury cars depreciate faster -- nearly half the value is lost in just 3 years.

Formulas Used

Compound Depreciation

Current Value = Purchase Price x (1 - Depreciation Rate) ^ Age

Calculates the current value of a vehicle using compound depreciation over its age in years.

Where:

Purchase Price= Original price paid for the vehicle
Depreciation Rate= Annual depreciation rate (Luxury: 20%, Standard: 15%, Economy: 12%, Truck: 18%)
Age= Vehicle age in years

Total Depreciation

Total Depreciation = Purchase Price - Current Value

The total amount of value lost since purchase.

Where:

Purchase Price= Original price of the vehicle
Current Value= Estimated current value after depreciation

Understanding Car Depreciation

Cars depreciate fastest in the first few years, losing 50% of value in 3-5 years.

Depreciation rates vary by vehicle type, with luxury cars losing value faster.

Understanding depreciation helps make informed buying and selling decisions.

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Last Updated: Feb 12, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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