Car Depreciation Calculator

Estimate your car's current value based on age and depreciation curve. See year-by-year value decline.
$
years
mi/yr

Estimated Current Value

$20,944.00

Total Depreciation

$14,056.00

Value Remaining

59.8%

Annual Depreciation Cost

$4,685.33

Depreciation by Year

Year 1$28,000.00 (-20%)
Year 2$23,800.00 (-15%)
Year 3$20,944.00 (-12%)

Estimates based on average depreciation curves. Actual values vary by make, model, condition, mileage, and market conditions.

Use the Car Depreciation Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Car Depreciation Calculator helps you estimate how much value your vehicle will lose over time, a crucial factor for budgeting and future resale. Understanding depreciation is key to making informed purchasing decisions and planning for your car's lifespan, especially with the rapid technological advancements expected through 2026.

This calculator uses a common depreciation model, assuming an average 20% value loss in the first year and 15% annually thereafter, which aligns with typical market trends for new vehicles. We also factor in an additional 5% depreciation for every 15,000 miles driven annually beyond the average, reflecting mileage impact.

A common mistake is underestimating depreciation, leading to negative equity on loans or lower-than-expected trade-in values. Remember that factors like vehicle condition, maintenance history, and market demand for specific models can significantly influence actual depreciation rates beyond this estimate.

Example: 2026 Honda CR-V

  1. 1 Input the purchase price of a new 2026 Honda CR-V at $32,000, an annual mileage of 18,000 miles, and a desired calculation period of 3 years.
  2. 2 The calculator applies a 20% depreciation in the first year ($6,400), then 15% on the remaining value for years two and three. It also accounts for the additional mileage depreciation.
  3. 3 After 3 years, the estimated value of your Honda CR-V would be approximately $17,500, having depreciated by about $14,500.
  4. 4 This estimated value can help you determine potential trade-in values, understand the true cost of ownership, and plan for future vehicle purchases or sales.

Source: IRS — Publication 946, How To Depreciate Property · Last updated: April 2026

Frequently Asked Questions

How much does a new car depreciate in the first year?
A new car typically loses 20-25% of its value in the first year. By year five, average depreciation reaches 40-50% of the original price. Luxury vehicles and certain brands depreciate faster.
Which cars hold their value the best?
Trucks and SUVs (Toyota Tacoma, Jeep Wrangler, Toyota 4Runner) and certain brands (Porsche, Toyota, Lexus) hold value best. Electric vehicles have historically depreciated faster, though popular models like Tesla are stabilizing.
Is buying a 2-3 year old used car the best value?
Yes, for most people. A 2-3 year old car has absorbed the steepest depreciation while still having modern safety features, remaining warranty coverage, and many years of life ahead. You can save 30-40% compared to buying new.

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