Car Depreciation Calculator
What your car will be worth, year by year — the biggest ownership cost most drivers never see
~20% is typical for new cars
~15% of remaining value per year
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Quick summary
Cars typically lose about 20% of their value in year one and roughly 15% of the remaining value each year after — leaving a new car worth about 42% of its price after five years. A $40,000 car drops to $32,000 in year one and about $16,700 by year five. Rates vary a lot by brand: trucks and Toyotas hold value far better; luxury sedans and many EVs fall faster. Both rates are adjustable here.
Reviewed by Simple Calculators TeamLast reviewed
How to use this calculator
- Enter the inputs requested by the calculator.
- Choose the units or options that match your situation and review the assumptions.
- Run or update the calculation to see the result.
- Review the result, breakdown, and formulas shown on the page.
- Check the inputs, units, dates, and limitations before saving or sharing the result.
Frequently asked questions
How much does a car depreciate per year?
Roughly 20% the first year and about 15% of remaining value annually for the next several years, per industry data — around 50–60% total over five years. It's the single largest cost of owning a new car, bigger than fuel or insurance for most drivers.
Which cars hold their value best?
Pickups (especially Toyota Tacoma/Tundra), Jeep Wranglers, Toyota and Honda models, and sports cars like the Porsche 911 consistently top resale rankings, retaining 55–70% at five years. Luxury German sedans and many first-generation EVs are at the other extreme, sometimes below 40%.
Does buying used avoid depreciation?
It avoids the steepest part — the car already took its 20–30% first-years hit. A 3-year-old car bought at 55% of original MSRP depreciates much more slowly from there, which is the math behind the classic buy-3-year-old-off-lease advice.
How does mileage affect value?
Average is about 12,000 miles/year; significantly more accelerates depreciation (a rule of thumb is roughly 10–20¢ of value per extra mile depending on the vehicle). This calculator models time-based averages — adjust the rates upward for high-mileage use.
Key terms
- Depreciation Curve
- Steep early, flattening later — the 20%-year-one, ~15%-after pattern this calculator defaults to.
- Residual/Resale Value
- What the car is worth at a point in time — what a dealer or private buyer would pay.
- Total Cost of Ownership
- Depreciation + fuel + insurance + maintenance — depreciation is usually the biggest piece for newer cars.
Methodology, sources & limitations
This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.
For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.