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Cost of OwnershipCar Depreciation Calculator — What Will My Car Be Worth?
A new car starts losing value the moment you drive it off the lot. Enter the price, a yearly depreciation rate, and how many years out you want to look — you’ll see the value remaining, the total lost, and a year-by-year table.
A typical car loses about 15–20% of its value per year, but the first year is the steepest — often 20% or more — then it flattens. After five years, expect roughly 40–50% of the original price gone. Trucks and popular models hold value better; many EVs and luxury cars drop faster.
How this calculator works
We apply the rate as compounding decline: each year the car keeps (1 − rate) of the prior year’s value, so value = price × (1 − rate)^years. That mirrors how cars actually depreciate — a big drop early, then a gentler slope. The table shows the value and cumulative loss for each year.
What changes the number
- The steepest drop is year one — often 20% or more — then it flattens. Buying a 1–2 year old car skips that first hit.
- High mileage, accidents, and a worn interior accelerate depreciation beyond the baseline rate.
- Desirable brands, trucks, and limited-supply models hold value better; redesigned-soon models drop faster.
Car depreciation chart — value by year ($32,000 car at 15%/yr)
| Year | Value | % of original | Total lost |
|---|---|---|---|
| 1 | $27,200 | 85% | $4,800 |
| 2 | $23,120 | 72% | $8,880 |
| 3 | $19,650 | 61% | $12,350 |
| 4 | $16,700 | 52% | $15,300 |
| 5 | $14,200 | 44% | $17,800 |
| 6 | $12,070 | 38% | $19,930 |
| 8 | $8,720 | 27% | $23,280 |
| 10 | $6,300 | 20% | $25,700 |
Frequently asked questions
What’s a typical depreciation rate?
Many cars average around 15% a year, landing near 40–50% lost after five years. But year one is usually much steeper than later years — this calculator’s compounding curve reflects that.
How do I slow depreciation?
Keep mileage moderate, maintain it with records, avoid accidents, and choose a color and trim that resell easily. Buying used lets the first owner absorb the worst of it.
Do EVs depreciate faster?
Historically many did, due to battery and tech concerns and shifting incentives, though popular models have improved. Check recent resale data for the specific vehicle.
How much does a car depreciate per year?
On average about 15–20% a year, though the first year is the steepest — often 20% or more — and it flattens after that. Most cars lose 40–50% of their value over five years.
What will my car be worth after 5 years?
At a typical 15% yearly decline, a car keeps about 44% of its price after five years — so a $32,000 car is worth roughly $14,200. Strong-resale models (many trucks and Toyotas) can hold 55–60%; fast-depreciating luxury cars can be under 35%. Enter your own price and rate above for a year-by-year table.