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Car Depreciation Calculator

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years
miles/yr
Current Value
Total Depreciation
Projected 1 Year
Projected 3 Years
Projected 5 Years
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Enter values to see the worked formula.

What Your Result Means

How This Calculator Works

You enter the original purchase price, the car's current age in years, and annual mileage. The tool applies a stepped depreciation curve: 20% loss in year one, 15% per year for years two through five, and roughly 10% per year after that. Mileage is collected for context but the current formula uses age as the primary depreciation driver, consistent with industry rule-of-thumb averages. The result is a starting estimate — for a precise trade-in value, check resources like Kelley Blue Book or Edmunds.

Quick Questions

Why do new cars lose so much value in year one?

The moment a new car is driven off the lot, it becomes "used" in the market's eyes. The first-year drop (typically 15–25%) reflects the difference between new-car retail pricing and the used-car market. This is the single largest depreciation hit in a vehicle's life.

Do some cars depreciate slower than others?

Yes. Trucks, SUVs, and certain brands (Toyota, Lexus, Porsche) tend to hold value better than average. Luxury sedans and high-volume economy cars often depreciate faster. This calculator uses an average curve — your specific vehicle may differ significantly.

Does mileage affect depreciation?

High mileage accelerates depreciation beyond the age-based curve. The average U.S. driver puts on about 12,000–15,000 miles per year. Vehicles well above that average lose value faster; low-mileage vehicles hold up better. This tool uses age only — for mileage-adjusted estimates, consult a pricing guide.

Is this accurate enough for a trade-in negotiation?

It gives a reasonable ballpark, but you should verify with Kelley Blue Book, Edmunds, or a local dealer appraisal before negotiating. Condition, accident history, service records, and local demand all affect the final trade-in offer.

Sources

Method & review

MethodologyHow we calculate this Reviewed & Updated2026-04 Next review2027-04

Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.