Car Depreciation Calculator
Estimate what your car, SUV, truck, or EV is really worth — realistic year-by-year resale values, total value lost, and a full 10-year depreciation schedule.
Vehicle Details
All values update instantly — no submit button needed.
Enter the full price you paid, including taxes and fees.
Miles per year — benchmark average is about 10,000–12,000 miles (16,000–19,000 km).
Estimated Current Resale Value
After 5 years of ownership · New Standard Sedan
Total Value Lost
0% of original value
Value Retained
0% of original value
Year-by-Year Depreciation Schedule
Projected market value and percentage loss for every year of ownership. The highlighted row and bar mark your selected timeframe.
| Year | Estimated Value | Loss That Year | Total Loss |
|---|
Estimates are based on typical market retention patterns for each vehicle category, adjusted for mileage and condition. Actual trade-in and private-sale offers vary by brand, model, local demand, and market timing — always cross-check against live listings before transacting.
A vehicle is one of the fastest-depreciating assets most households will ever own. The calculator above projects your car's resale value year by year using realistic market retention patterns for the United States, United Kingdom, Canada, and Europe — whether you drive a new sedan, a used SUV, a pickup truck, a luxury car, or an electric vehicle. Below, we explain exactly how vehicle depreciation works, which cars lose value fastest, and the practical habits that protect your money.
- First-year loss is the biggest: most new vehicles lose 15–25% of their value within 12 months.
- The five-year reality: a typical new car retains only 40–50% of its original price after five years.
- Type matters: trucks and mainstream SUVs hold value best; luxury sedans and electric vehicles depreciate fastest.
- You control part of it: mileage, condition, service history, and selling timing can swing resale value by 10% or more.
- Buying used shifts the cost: letting the first owner absorb the steepest depreciation years is usually the cheapest way to run a car.
How to Calculate Vehicle Depreciation and Future Resale Value Accurately
The most accurate way to calculate vehicle depreciation is the declining-balance method, which applies a percentage loss to the car's remaining value each year instead of spreading the loss evenly. Depreciation is front-loaded: a vehicle loses more value in its first year than in its fourth, and more in its fourth than in its eighth. A reliable projection therefore needs a curved schedule, not a straight line.
Resale Value ≈ Purchase Price × (1 − Annual Loss Rate)Years. Example: a $30,000 vehicle losing 20% in year one and 15% in year two is worth roughly $20,400 after two years. The calculator above runs this formula for all ten years, using separate retention curves for five vehicle categories, then adjusts each year for mileage and condition.
To calculate your car's future value step by step:
- Start with the true purchase price — the amount you actually paid, including taxes, fees, and options that transfer value to the next owner.
- Apply the correct first-year rate — typically 15–25% for a new vehicle, and a noticeably smaller rate for one that is already used, because the steepest drop has already happened.
- Continue with declining annual rates for each following year rather than one flat percentage; the curve flattens as the vehicle ages.
- Adjust for real-world factors: annual mileage against the 10,000–12,000-mile (16,000–19,000 km) norm, vehicle condition, and category — sedan, SUV, truck, luxury, or electric.
- Cross-check against live listings of the same model, mileage band, and trim in your market before you buy, sell, or trade in.
Why a curve beats an average: a single "average depreciation" number hides the year-by-year reality that matters when you are timing a sale or a trade-in. The schedule table above shows the estimated value and the exact percentage lost in every single year, so you can see precisely where the curve flattens and your per-year cost of ownership drops.
Which Cars Lose Value Fastest vs. Vehicles That Hold Their Value Best
Luxury sedans and electric vehicles generally lose value fastest, while pickup trucks, mainstream SUVs, and models with strong reliability records hold their value best. The pattern is remarkably consistent across the US, UK, Canada, and Europe, even where absolute prices differ.
Vehicles that typically lose value fastest:
- Luxury and premium sedans — high list prices, costly servicing, and fast technology cycles push used buyers toward newer, cheaper alternatives.
- Electric vehicles — rapid improvements in battery range and charging, plus incentive-driven pricing on new EVs, put downward pressure on used values.
- Large premium SUVs — the same premium-brand effect, amplified by higher running costs.
- Base trims of premium brands — desirable options and specs retain value; stripped trims usually do not.
Vehicles that typically hold their value best:
- Pickup trucks — constant work and trade demand keeps used supply tight and prices firm.
- Mainstream family SUVs and crossovers — broad buyer demand at every budget level.
- Models known for reliability and low running costs — a strong reputation compounds in the used market over time.
- Limited-run and off-road-focused trims with waiting lists — scarcity supports resale prices.
Why the gap exists: resale value is a supply-and-demand auction. Vehicles that many buyers want and few owners sell command premium residuals; vehicles that are expensive to run, quickly outdated, or heavily discounted when new do the opposite.
Key Factors Affecting Vehicle Depreciation Rates (Mileage, Vehicle Condition, Market Demands)
Mileage, condition, and market demand are the three factors that move depreciation rates the most — and the first two are largely under your control.
- Mileage: the informal benchmark is roughly 10,000–12,000 miles (16,000–19,000 km) per year. Consistently running above it means buyers discount the car; well below it, values hold noticeably better.
- Condition and history: full service records, accident-free bodywork, and clean interiors routinely command meaningfully higher resale prices than rougher equivalents.
- Market demand and fuel costs: when running costs rise, demand shifts toward efficient, hybrid, and smaller vehicles; when confidence is high, trucks and large SUVs benefit.
- Model cycle timing: an all-new redesign typically knocks value off the outgoing generation — selling just before a redesign protects your money.
- Color and specification: neutral, popular colors sell faster; unusual colors and odd option combinations take longer to sell and fetch less.
Residual value is the share of the original purchase price a vehicle is expected to retain after a set period or mileage. Leasing companies use projected residual value to calculate monthly payments; private owners can use the same logic to choose models that cost less to own overall.
Frequently Asked Questions
Direct answers to the questions car buyers and owners ask most about depreciation.
How much value does a new car lose in the first year?
Most new vehicles lose between 15% and 25% of their value in the first twelve months, with around 20% being a fair planning average. It is the single largest loss of the entire ownership period, which is why the year-by-year schedule above starts steepest.
Do electric vehicles depreciate faster than gas cars?
Yes — on average, electric vehicles have historically lost value faster than comparable petrol, diesel, and hybrid cars. The main reasons are fast-moving battery technology, improving range, and incentive-driven pricing on new EVs. The gap has been narrowing as EVs go mainstream, but buyers should still plan for steeper early depreciation.
How much does a car depreciate in 5 years?
A typical new car retains roughly 40–50% of its original price after five years — in other words, it loses about 50–60% of its value. Vehicle type, mileage, and condition shift that number substantially; the ten-year schedule above shows it for your exact inputs.
Which vehicles hold their value best?
Pickup trucks, mainstream family SUVs, and models with long-standing reliability reputations consistently top resale-value rankings. Limited-run and off-road-focused trims also resist depreciation because demand outstrips supply.
How does mileage affect car depreciation?
Mileage above the 10,000–12,000-mile annual benchmark reduces resale value noticeably, and the penalty compounds every year. Lower-than-average mileage slows depreciation, though extremely low mileage delivers diminishing returns because buyers still price in age-related wear.
Is it better to buy new or used to avoid depreciation?
Buying a two-to-four-year-old used vehicle is usually the cheapest way to own from a depreciation standpoint, because the first owner has already absorbed the steepest early losses. Buying new makes more sense when you plan to keep the vehicle for many years and value full warranty coverage and ownership history.
How can I reduce my car's depreciation?
Keep mileage moderate, follow the service schedule with documented records, fix stone chips and minor damage promptly, choose popular colors and options when buying, and sell before a major model redesign. Together, these habits protect several percentage points of resale value.
Disclaimer: The calculator and this guide provide estimates for general information only. They are not a formal valuation, appraisal, or financial advice. Actual resale prices depend on brand, model, specification, local market conditions, and negotiation.
Car Depreciation Calculator by AGRC Cars · Estimates are for guidance only and do not constitute a formal valuation.