Car Depreciation Calculator
Estimate how much a car has lost in value — and what it will be worth after another few years — using typical U.S. depreciation curves.
What is Car Depreciation Calculator?
The car depreciation calculator estimates how much a vehicle has already lost in value — and how much more it will lose if you keep it. U.S. new cars typically lose about 20% the first year and another 15% per year afterward; slow-depreciating models (Toyota, Honda, some luxury SUVs) lose less, while luxury sedans and fast-changing EVs lose more.
Formula
Value at year N = purchase price × (1 − year-1 rate) × (1 − after-rate)^(N − 1)
Rates by profile:
- Slow: 15% year 1, 12% / year after
- Typical: 20% year 1, 15% / year after
- Fast: 25% year 1, 18% / year after
Worked example
A $35,000 car, 3 years old, typical depreciation profile, keeping 5 more years (8 years old at end):
- End of year 1: 35,000 × 0.80 = $28,000
- Year 3 (now): 28,000 × 0.85² ≈ $20,230
- Year 8 (after another 5): 20,230 × 0.85⁵ ≈ $8,978
- Lost to date: $14,770. More loss over hold: $11,252.
How to use this calculator
- Enter the original purchase price — MSRP, not lease cap cost, for new vehicles.
- Enter how old the car is now.
- Enter how many more years you expect to keep it.
- Pick a depreciation profile that matches your make — check iSeeCars resale data if unsure.
Frequently asked questions
Why do cars lose so much in year one?
New cars transition to "used" the moment they leave the lot. Buyers pay a premium for that factory-fresh status; once it's gone, price catches up to comparable 1-year-old inventory. Taxes, registration, and dealer markup also evaporate.
Which cars depreciate slowest in the U.S.?
Toyota 4Runner, Tacoma, and Tundra; Honda Civic and CR-V; Subaru Crosstrek and Outback; Jeep Wrangler; Porsche 911. These routinely retain 60–75% of value at 5 years vs a ~50% market average.
Do EVs depreciate faster?
Historically yes, due to rapid range and tech improvements plus federal tax credit resets. Newer Teslas and the Ford Lightning are depreciating faster than gasoline peers. The gap is narrowing for premium EVs.
Does mileage affect resale more than age?
Both matter. A rough rule: every 10,000 miles above the 12,000/year average shaves a few percent off value. The average U.S. car accumulates 120,000 miles by age 10.