Estimate a vehicle's future value using an annual depreciation rate.
Calculator
Vehicle Depreciation Results
Review retained value, total loss, ownership-period cost, and the annual value schedule.
Starting Value and Depreciation
Calculation Details
| Metric | Value | Note |
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Year-by-Year Depreciation
| Year | Opening value | Rate | Value lost | Ending value |
|---|
How car depreciation is calculated
This calculator applies an entered percentage to the vehicle value remaining at the start of each year. That is declining-balance depreciation: the dollar loss usually becomes smaller as the modeled value falls. Choose one constant rate for every year or separate the first year from later years.
ending value = opening value x (1 - annual depreciation rate)
Constant rate versus two-stage depreciation
The constant-rate method is useful when you start from a vehicle's current market value and want a simple forward projection. The two-stage method can model a new vehicle with a larger first-year loss and a different rate afterward. Both are planning assumptions, not model-specific market forecasts.
Car depreciation example
A $35,000 starting value depreciating 15% annually for five years falls to $15,529.69. The modeled loss is $19,470.31, or 55.6% of the starting value. At 12,000 miles per year, that equals about $0.32 of depreciation per mile across 60,000 projected miles.
Value floor and mileage result
The optional floor prevents the projection from dropping below an entered residual amount. The per-mile figure divides total modeled depreciation by projected miles; mileage does not independently change the value in this calculator. Use it to compare ownership horizons under the same assumptions.
Market depreciation is not tax depreciation
This page estimates a possible change in market value. It does not calculate a business deduction, MACRS, Section 179, bonus depreciation, basis, recapture, or passenger-automobile tax limits. The IRS Publication 946 covers federal tax depreciation rules for qualifying property.
Verify the starting value and rate
Actual resale value depends on make, model, trim, age, mileage, condition, accident history, options, location, season, supply, and demand. Edmunds vehicle appraisal guidance explains that market valuation considers many of these factors. Use a current vehicle-specific appraisal before making a sale, insurance, lending, or purchase decision.
Related vehicle-value tools
Use the car resale value calculator when you need expected sale proceeds after selling costs and a future loan payoff. For a current estimate based on a local comparable, use the used car value calculator. For dealer trade equity, use the trade-in value calculator.
Frequently asked questions
Does a 15% rate subtract 15% of the original value each year?
No. This model applies 15% to the remaining value each year, so the annual dollar loss declines over time.
Does mileage change the projected value?
No. Mileage is used only to show depreciation per mile. Adjust the entered rate or starting value when you expect mileage to affect market value.
Can a car appreciate?
This calculator models depreciation rates from 0% to 100%. Collectible or unusually scarce vehicles can behave differently and require market data.