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Car Depreciation Calculator

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What is Car Depreciation Calculator?

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Car depreciation is the loss in vehicle value over time — typically the largest hidden cost of ownership. New cars lose 15–25% in year one and ~50% of value in 3 years.

Calkulon makes complex calculations simple — built for students and everyday problem-solvers.

Vzorec

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f(x)Declining balance: Value = Initial × (1 − rate)^years; Straight-line: Value = Initial − (Cost per year × years)

Variable Legend

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SymbolMenoJednotkaPopis
V₀Initial vehicle valueCurrency—
rAnnual depreciation ratePercentage (e.g., 0.15 for 15%)—
tYears heldYears—

How to Car Depreciation Calculator

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  1. 1Declining balance: value × (1 − rate) each year
  2. 2Straight-line: equal loss each year
  3. 3Low mileage and good condition slow depreciation
  4. 4EVs may depreciate faster due to battery concerns

Worked Examples

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Example 1
Given:$30k car, 20% annual depreciation
Výsledok:Year 1: $24k; Year 3: $15.4k; Year 5: $9.8k

Real-World Applications

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New vs used purchase decision

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Lease vs buy analysis

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Total cost of ownership calculation

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Trade-in value estimation

Typical Depreciation ($30k car)

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YearValue remaining
1$24,000 (80%)
2$19,200 (64%)
3$15,360 (51%)
5$12,300 (41%)

Frequently Asked Questions

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Q

Why do new cars depreciate so fast?

A

Dealer markup (10–15%), taxes, and the "new car smell premium" vanish instantly. Year 2–5 depreciation slows as you're past the initial shock.

Q

How does mileage affect depreciation?

A

High-mileage cars (> 15k miles/year) depreciate faster. Standard is 12k/year. Each 1k extra miles reduces value ~$100–150 depending on vehicle.

Q

Do EV batteries affect resale?

A

Yes. Battery degradation concerns and unknown long-term costs make EVs depreciate faster. A 2018 EV in 2024 may lose value to buyer uncertainty about 200k-mile reliability.

Regional Guides

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US▾
Average: 15–25% year 1, ~60% retained after 3 years. Mid-market cars depreciate faster; luxury/brands depreciate slower but from higher base.
UK▾
Vehicle tax, MOT, and repairs accelerate effective ownership cost. Used market more fragmented by mileage. London congestion charge impacts residual.
Len na informačné účely. Tento nástroj nepredstavuje finančné poradenstvo. Pred investičnými alebo finančnými rozhodnutiami sa poraďte s kvalifikovaným finančným poradcom.
Deep Dive

Read the full guide on how to use this calculator effectively

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Formula-verified for precision
Reviewed October 2026
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