Car Depreciation Calculator
A percentage of what is left, not of what you paid.
Work out Car Depreciation. A percentage of what is left, not of what you paid. States the assumption instead of hiding it.
Value after 5 years
12,528
17,472 lost — 58.2% of the purchase price
Depreciation is a percentage of the remaining value each year, not of the original price. That is why the curve is steep at first and shallow later, and why a car losing 20% a year still holds a third of its value after five — rather than nothing, which a straight-line calculation would suggest. The first year is separate because it usually is. New cars typically shed 15 to 35% the moment they are registered and driven away, and the second and subsequent years settle to a lower rate. That gap is the entire financial argument for buying a car two or three years old. For most owners depreciation is the single largest cost of running a car, comfortably exceeding fuel, insurance and servicing combined — and it is the one nobody sees on a monthly statement.
How the Car Depreciation Calculator works
Car value over time by declining balance, with a separate first-year rate because the first year usually is separate. Depreciation is a percentage of the remaining value each year, which is why the curve is steep at first and shallow later.
Also known as: what will my car be worth · how much do cars lose per year · is it cheaper to buy used · car value after 5 years
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
How fast do cars depreciate?
Typically 15 to 35% in the first year and 10 to 20% a year after. Because each year takes a percentage of what is left, a car losing 20% annually still holds about a third of its value after five years.
Why is the first year so much worse?
New cars shed a large share of their value the moment they are registered and driven away, and that gap is the entire financial argument for buying two or three years old — you let someone else absorb the steepest part of the curve.
What is the biggest cost of running a car?
Depreciation, for most owners, comfortably exceeding fuel, insurance and servicing combined. It is also the one nobody sees on a monthly statement, which is why it gets left out of the mental arithmetic.
Which cars depreciate least?
Ones with strong demand and constrained supply — certain trims, manual sports cars, well-regarded hybrids. Specification matters more than most buyers assume: an unpopular colour or a missing option can cost several percent at resale.
Does mileage affect depreciation?
Yes, and the effect is strongest around the round numbers buyers search on. Above average annual mileage costs noticeably more than the wear alone justifies, which is why the cost-per-kilometre figure here is worth looking at.
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