Car Depreciation Calculator
Straight-line or declining-balance depreciation. Most cars lose 15-25% year 1, 50%+ by year 5.
Result
Value after 5 years
$12,976
Lost $22,024 (62.9%).
- Purchase price$35,000
- MethodDeclining balance
- Rate18.0%/yr
- Years5
- Final value$12,976
- Total loss$22,024
- Year 1 value−$6,300$28,700
- Year 2 value−$5,166$23,534
- Year 3 value−$4,236$19,298
- Year 4 value−$3,474$15,824
- Year 5 value−$2,848$12,976
Step-by-step
- Declining-balance: subtract 18.0% of remaining value each year.
- Final = $12,976 after 5 years.
How to use this calculator
- Enter purchase price.
- Pick method (declining-balance more realistic).
- Pick rate (15-25% common).
- Read year-by-year value.
About this calculator
Cars typically depreciate 15-25% in year 1 (declining-balance), and 10-15% per year thereafter. Luxury cars and EVs depreciate fastest (the EV used market is volatile). Trucks and Toyota/Honda hold value best — Tacoma and 4Runner often retain 60-70% after 5 years. Declining-balance is more realistic than straight-line because it captures the front-loaded depreciation pattern. KBB / Edmunds residual value tools give brand-specific data.
Frequently asked
Buying new vs. used is a category change. Same car: ~15% drop on day 1, then ~10% per year.
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