Car Depreciation Calculator
Estimate your car's resale value over time using a flat annual depreciation rate.
How it works
The calculator applies a flat annual depreciation rate compoundingly: each year the car retains (1 minus the rate) of its value, so the loss compounds rather than staying constant in dollar terms. Real-world depreciation is rarely this even — it’s often steeper in the first couple of years — so treat the result as an estimate, not a valuation.
resale value = purchase price × (1 − annual rate) ^ years
Worked example
A $35,000 car depreciating at 12% p.a. over 4 years:
- Value after 1 year
- $35,000 × 0.88 = $30,800
- Value after 4 years
- $35,000 × 0.88⁴ ≈ $20,990
- Total lost
- $35,000 − $20,990 ≈ $14,010
Frequently asked questions
This calculator applies a flat annual depreciation rate to your purchase price to estimate resale value. At a 15% annual rate, a $40,000 car would be worth roughly $17,750 after 5 years. Real depreciation isn't perfectly flat — it's often steeper in the first year or two — so treat this as a general estimate, not a valuation.