Car Depreciation Calculator

Estimate your car's current value based on age and depreciation curve. See year-by-year value decline.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Publication 946, How To Depreciate Property

$
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

Every vehicle sheds value the moment it leaves the lot, and projecting how much it will lose over the years you own it shapes smart budgeting and resale planning. Knowing the curve in advance helps you buy with open eyes and plan around the car's useful life, particularly as the pace of automotive technology keeps accelerating through 2026.

The model here follows a widely used pattern: roughly 20% of value disappears in the first year, then about 15% each year after that, which tracks closely with how new vehicles behave on the open market. Hard miles matter too, so the estimate adds another 5% in depreciation for every 15,000 miles driven per year above the typical average.

Underestimating this decline is how buyers end up owing more than the car is worth or feeling shortchanged at trade-in time. Real-world depreciation also responds to condition, service records, and how much demand exists for a particular model, any of which can move the actual rate well off this baseline 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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