Car Depreciation Calculator
At 15% annual depreciation, a $30,000 car is worth about $13,311.16 after 5 years. This car depreciation calculator projects a vehicle's current value forward with a fixed annual depreciation rate and timeline. Enter the car's value today, the yearly depreciation rate, and the number of years to estimate future value plus total depreciation.
Quick answer
This model compounds the loss, so each year's drop applies to a smaller value than the year before.
This estimate assumes the car loses the same percentage of value every year. It does not adjust for mileage, accidents, trim, maintenance history, or local demand.
What this tells you
- •This model compounds the loss, so each year's drop applies to a smaller value than the year before.
- •Higher annual depreciation rates cut future value much faster over longer timelines.
- •Total depreciation is the current vehicle value minus the projected future value.
How to Use
- 1Enter the car's current estimated value in dollars.
- 2Enter the annual depreciation rate as a percent, such as 15 for 15% per year.
- 3Enter the number of years you want to project forward. Decimal years are allowed for rough mid-year estimates.
- 4Calculate to see the projected vehicle value, total depreciation, and value retained percentage.
How It Works
Formula
Future value = Current value × (1 - annual depreciation rate)^years
Total depreciation = Current value - Future value
Example: $30,000 × (1 - 0.15)^5 = $13,311.16Convert the annual depreciation rate from a percent to a decimal, subtract it from 1, and raise that retention factor to the number of years in the projection. Multiply the result by the current vehicle value to estimate the future value. Then subtract the future value from the current value to get total depreciation.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Mid-priced car after 5 years
With a fixed 15% annual drop, the car keeps about 44.37% of its starting value after 5 years. That means a little more than half of the value is gone across the projection period.
Newer SUV with slower annual depreciation
A lower annual depreciation rate leaves more value on the table. In this case, the SUV still retains about 68.15% of its current value after 3 years.
What 15% annual depreciation looks like on $30,000
This quick table shows how the same current vehicle value changes when the annual depreciation rate stays fixed at 15%.
| Years | Projected value | Total depreciation | Value retained |
|---|---|---|---|
| 1 | $25,500.00 | $4,500.00 | 85.00% |
| 3 | $18,423.75 | $11,576.25 | 61.41% |
| 5 | $13,311.16 | $16,688.84 | 44.37% |
| 7 | $9,617.31 | $20,382.69 | 32.06% |
Real vehicles do not lose the same percentage every year. Mileage, brand, accidents, condition, and local demand can move value up or down.
Common mistakes
- Entering 0.15 when you mean 15%, which understates the depreciation rate by a factor of 100
- Using the original purchase price instead of the car's current market value
- Treating one flat annual rate as a resale quote even though mileage, condition, options, and location can change the outcome