Car Depreciation Calculator
Car & BikeWhat a vehicle will be worth each year, and what the loss really costs.
Runs entirely in your browser — nothing is uploaded
Features
- Compounds on current value, not the original price.
- Separate first-year and later-year rates.
- Year-by-year value, loss and share retained.
- Runs entirely in your browser — nothing you enter is uploaded.
How to use the Car Depreciation Calculator
- 1Enter the purchase price and how long you will keep it.
- 2Set the first-year and later-year rates.
- 3Read the resale value and the total loss.
Frequently asked questions
How fast does a car lose value?
Typically 15–25% in the first year and 10–15% a year after that, compounding on the reducing value. A car is usually worth around half its purchase price after three years and a third after five.
Why is the first year so much worse?
The car stops being new the moment it is registered, and a large part of the price was taxes and dealer margin that no second-hand buyer will pay. The drop happens on the drive home, not over the year.
Is buying a three-year-old car better value?
Financially, usually yes — the steepest depreciation has already been absorbed by the first owner, while most of the useful life remains. The trade is a shorter remaining warranty and more unknowns about how it was treated.
Does this match what an insurer would pay?
Insurers use their own depreciation schedule for the insured declared value, which is broadly similar but fixed by slab. Use this as a guide to market value; check the policy for the IDV the insurer will actually settle at.