Car Depreciation Calculator
See how much your car loses in value each year — with a full year-by-year breakdown and depreciation chart.
| Year | Value | Lost this year | Total lost | % retained |
|---|
About the Car Depreciation Calculator
This calculator uses the declining balance method to project how your car loses value year by year. Enter the purchase price, current age, annual depreciation rate, and how many years you want to project. You can also set a different first-year rate for new cars — which typically depreciate faster in year one — and flag a planned sale year to highlight it in the table.
What depreciation rate should I use?
The right rate depends on your car type and brand. As a starting point: 20–25% for brand-new cars in year one, 15% per year for average used mainstream cars, 10–12% for well-regarded Japanese or Korean models that hold value well, and 20–25% for new luxury or European brands. If you know your car's actual resale history, use that instead.
How the declining balance method works
Each year, the depreciation percentage is applied to the current value — not the original price. This means the dollar loss is large early on (when the value is high) and shrinks each year. It mirrors how real car markets behave far more accurately than straight-line depreciation.
When should I sell?
Financially, the best time to sell is usually after the steepest first 1–3 years of depreciation have passed but before reliability costs begin rising (typically around the 8–10 year mark). However, the optimal time also depends on mileage, condition, current market demand, and your personal finances.